What factor explains both agglomeration and Deglomeration in the rise and decline of cities?

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2026-02-16 16:05

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The factor that explains both agglomeration and deglomeration in the rise and decline of cities is economic dynamics, particularly the interplay of production efficiency and market accessibility. Agglomeration occurs when businesses and populations cluster together to benefit from shared resources, reduced transportation costs, and increased innovation. Conversely, deglomeration can arise due to factors such as rising costs, technological advancements that enable remote work, or shifts in consumer behavior, prompting businesses and populations to disperse. These dynamics illustrate how cities evolve in response to changing economic conditions and technological advancements.

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