Transportation costs are the primary driver of agglomeration because they determine the extent to which firms can benefit from economies of scale and specialization.

Transportation costs are negatively correlated with the size of the market because lower transportation costs allow firms to reach a larger market with their products.

The core-periphery model describes the concentration of economic activity in a central region, often referred to as the 'core', surrounded by less developed areas, known as the 'periphery'.

Transportation costs, labor market pooling, and knowledge spillovers are all factors that can contribute to the formation of industrial clusters.

Deglomeration refers to the process by which firms relocate from high-cost to low-cost regions.

Agglomeration typically leads to increased transportation costs due to the concentration of economic activity in a smaller area.

Localization refers to the tendency for firms in the same industry to locate near each other.

Agglomeration typically leads to improved infrastructure due to the concentration of economic activity in a smaller area.

Centralization refers to the process by which firms relocate from low-cost to high-cost regions.

Increased transportation costs, technological advancements, and government policies can all contribute to the dispersal of economic activity.

Urbanization refers to the tendency for firms in different industries to locate near each other.

Dispersion typically leads to reduced access to skilled labor due to the spread of economic activity over a larger area.

Decentralization refers to the process by which firms relocate from urban to rural areas.

Transportation costs, labor market pooling, and knowledge spillovers are all factors that can contribute to the agglomeration of economic activity.

Centralization refers to the tendency for firms to locate near transportation hubs.