MODERN APPROACHES TO UNDERSTANDING THE ROLE OF URBAN AGGLOMERATIONS IN THE SUSTAINABLE DEVELOPMENT OF THE NATIONAL ECONOMY
Abstract
The article examines the importance of urban agglomerations as key factors contributing to the sustainable development of the national economy. The article is based on modern research by both Ukrainian and foreign scholars who study the mechanisms of the agglomeration effect on economic growth, labor productivity, innovative development and social well-being of the population. Urban agglomerations create preconditions for more efficient use of resources and improve the investment climate. By concentrating human capital, scientific institutions, technology companies, and infrastructure facilities within large urban centers, agglomerations help to intensify innovation and increase the overall level of economic efficiency. One of the key aspects of the article is the analysis of the positive effects of agglomeration. These include: concentration of productive forces, which allows for greater efficiency in production and services; a specialized labor market where employees and employers have a wider choice and can better meet each other's needs; efficient use of natural resources and sharing of infrastructure, which reduces costs and promotes sustainable development. The article also notes the importance of agglomerations for the development of human capital, as a high concentration of people facilitates the exchange of knowledge and experience, which is the basis for innovation and productivity. Agglomeration processes are also viewed through the prism of environmental sustainability, which is an important element of sustainable development. High population density allows for optimized use of land and energy resources, creating favorable conditions for the transition to greener ways of doing business and managing cities. In this context, the article emphasizes the role of urban agglomerations in achieving the UN Sustainable Development Goals, in particular in ensuring sustainable urban development, promoting innovation and improving the quality of life. The challenges facing urban agglomerations are also highlighted. Excessive population concentration can lead to negative consequences, such as environmental pollution, rising costs of living, and increased social inequality. However, the authors of the article emphasize that with proper management, these risks can be minimized, and the benefits of agglomeration processes will far outweigh the possible disadvantages.
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