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Multiplier Effects in Local and Regional Development
The aim of the paper is to outline demand-driven multiplier mechanisms, the theory behind them, and applicable quantification methods (aggregate models and incremental methods). The authors discuss a number of key problems related to multiplier effects as fundamental mechanisms of local and regional development. The study of the magnitude, industry structure, spatial distribution, and key determinants of those effects can help understand growth mechanisms in local and regional economies and evaluate the advantages and disadvantages associated with new, e.g. foreign, investment. Furthermore, the results of earlier empirical studies of the magnitude, spatial distribution and determinants of multiplier effects are presented together with the outcomes of the authors' own study.
policy tool for regionaldevelopment – on CEE regions. To do so, we use the path dependence concept to present the historical legacy of development in the region. We then look deeper at Cohesion Policy to analyse its impacts on CEE regions, investigating two hypotheses: (1) that Cohesion Policy provides an opportunity for CEE regions to break from their historical development paths and (2) that the impacts of Cohesion Policy on development potentials differ between CEE regions. The analysis is conducted on two levels, country and regional (NUTS II), utilising data from