This report identifies the positive socio-economic impacts arising from greater agglomeration across the Australian regional landscape. To facilitate the analysis, an extensive literature survey was undertaken to understand the impacts of agglomeration across various international jurisdictions and identify a modelling framework that could be used in the Australian case. The literature survey found that the term ‘agglomeration’ has evolved over time and that the methods used by analysis to isolate and quantify agglomeration impacts are many and varied influenced predominantly by the availability of data concerning the region(s) under examination.
This report itself:
- Outlines the results of the literature survey;
- Provides a comprehensive list and evaluation of quantitative models used to measure agglomeration;
- Applies a robust modelling framework to the Australian case; and
- Outlines the data and data sources used to facilitate the quantitative modelling.
The report concludes with a detailed scenario analysis isolating and quantifying the impacts of marginal effects of changes in workforce density on economic activity as proxied by gross regional product. It should be noted that the motivation behind the scenario analysis is not to examine the impact of population on economic activity but rather to compare the economic impacts as they manifest between regional and metro areas.