Local multiplier effect
The local multiplier effect (sometimes called the local premium) refers to the greater local economic return generated by locally-owned independent businesses as a percentage of sales compared to corporate chains or other absentee-owned businesses.Localisation advocates cite the multiplier effect as one reason for consumers to do more of their business locally.
Two U.S.-based entities have published studies measuring the local multiplier. Civic Economics a for-profit economic consultancy has undertaken studies in Austin, TX, San Francisco, CA; Chicago, IL and Western Michigan . The Institute for Local Self-Reliance, a non-profit organization, executed a study looking at much smaller communities in the Central Coast of Maine. [1]
External links
- Summaries of various studies on the multiplier effect, compiled by the New Rules Project
- A more thorough explanation of the multiplier effect (distinguishes direct, indirect and induced impacts) by the American Independent Business Alliance
- ^ Index of studies on the multiplier effect by Civic Economics and ILSR Index on NewRules.org
- ^ Amazon's Physical Presence (Nexus) in U.S. States Resource compiled by American Independent Business Alliance