Abstract

This review article discusses the agglomeration benefits of transport investment, the agglomeration economies, and their types; urbanization and localization economies which were explained in numerous ways. The general background and literature review related to agglomeration benefits of transport improvements, and the relation of agglomeration and cities were shown with the help of the Venables model. This article discussed the case studies that shows the comparison of agglomeration benefit with user benefit. The results revealed that agglomeration benefits are associated with transportation investments and the transport improvements will help people to communicate with each other and established their business in easily accessible locations. Moreover, the productivity of firms is linked with improved transport structure.

Keywords:Agglomeration; Agglomeration Benefits; Urbanization Economies; Localization Economies; Venables Model