Local Multiplier Effect

The local multiplier effect describes additional economic benefit accrued for an area from cash being spent from the local economy. The term have been taken up by simply advocates for “spend local” campaigns besides more formal treatments in community of Regional Monetary Development. One perspective from the local multiplier effect concentrates on the greater nearby economic return generated by money spent at locally-owned independent businesses when compared with corporate chains as well as other absentee-owned corporations.