abstract:The local multiplier effect (sometimes called the local premium) refers to the greater local economic return generated by money spent at locally-owned independent businesses compared to corporate chains or other absentee-owned businesses. Localisation advocates cite the multiplier effect as one reason, of many, for consumers to do more of their business locally.
Those farmers, in turn, help to spur local rural economies, via the multipliereffect, as they tend to spend the majority of their income on local goods and services.
To rewind, an economic consultancy reported for Scottish Enterprise 10 years ago that there is a multipliereffect in the west of Scotland - that is, local businesses supply Faslane and Coulport, and then a portion of the salaries of 6, 500 people is spent on local businesses.