Perkembangan Studi Ekonomi Aglomerasi dan Implikasinya Bagi Perkembangan Perkotaan di Indonesia Abstract : he literatures discussed here are part of considerable works on agglomeration economies. This paper presents the literatures on agglo meration economies theoretically as well as empirically. The focus is mainly on localization economies, which is external to the firm but internal to the industry in a location, and urbanization economies which is external to the industry but internal to urban area. Several theoretical models based on city size theory are discussed in order to give the readers an insight about how to incorporate economies of agglomeration in the model. Meanwhile, several production function: as a popular method in empirical studies measuring economies of agglo meration are presented, including the form of estimation functions. This paper also reviews the studies in Indonesia related with areffort to explain, the causes of industrial concentration. Finally a brief discussion in the last part of the paper tries to find the implications of the studies on urban development in Indonesia

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