Spatial economics is a branch of economics that studies how location and geography influence economic activities. It examines how the distribution of resources, population, and industries affects economic outcomes. By analyzing spatial patterns, economists can understand regional development, urbanization, and the location of businesses. This field also explores concepts like agglomeration economies, where businesses benefit from being close to each other, and transportation costs, which impact trade and commerce. Spatial economics helps policymakers make informed decisions about infrastructure, zoning, and regional planning to promote economic growth and efficiency.