How important is geography for agglomeration ?

  title={How important is geography for agglomeration ?},
  author={Michael Roos},
The economic geography literature distinguishes between two types of reasons for economic agglomeration. Regional concentration of economic activity can be attributed to ”Þrst nature” meaning geographic advantages and disadvantages given by nature or to ”second nature” meaning agglomeration economies by the interaction of economic agents. Several recent studies tried to estimate the relative importance of the two types of explanantion. Most of these studies seem to exaggerate the importance of… CONTINUE READING