Multiplier Effect | Sponsors Directory

The multiplier effect is a concept in economics that describes the additional economic benefit accrued to an area from money being spent in the local economy. The concept has been applied in various contexts, including urban planning and rural development. According to some sources, the local food movement has been driven in part by the recognition of the multiplier effect of local spending. The concept has been influential in shaping economic policies, reportedly. The multiplier effect can be measured using various indicators, including GDP, employment rates, and income levels.