Multiplier Effects in Local and Regional Development

Bolesław Domański 1  and Krzysztof Gwosdz 1
  • 1 Institute of Geography and Spatial Management, Jagiellonian University, Cracow, Poland

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.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Alexander J. W., 1954. The basic-nonbasic concept of urban economic functions. Economic Geography 30: 246-261.

  • Barford B., 1938. Local economic effects of a large scale industrial undertaking. Munksgaard, Copenhagen.

  • Connaughton J. E. & Madsen R. A., 2001. Assessment of economic impact studies: the cases of BMW and Mercedes-Benz. Review of Regional Studies 31: 293-303.

  • Domański B., 1997. Industrial control over the socialist town. Benevolence or exploitation? Praeger, Westport, CT.

  • Domański B., 2001. Kapitał zagraniczny w przemyśle Polski. Prawidłowości rozmieszczenia, uwarunkowania i skutki (Foreign capital in Polish manufacturing and mining). Uniwersytet Jagielloński, Instytut Geografii i Gospodarki Przestrzennej, Kraków.

  • Domański B., Gwosdz K., Huculak M. & Wiedermann K., 2005. Oddziaływanie SSE Euro-Park Mielec na otoczenie lokalne. Powiązania firm i efekty mnożnikowe (Impact of the Euro-Park Mielec SEZ on its local environment. Company linkages and multiplier effects). In: B. Domański & K. Gwosdz (eds), Dziesięć lat doświadczeń pierwszej polskiej specjalnej strefy ekonomicznej. Mielec 1995-2005. Instytut Geografii i Gospodarki Przestrzennej UJ i ARP O. Mielec, Kraków-Mielec, 89-131.

  • Harris T., Griswold T., Segurson M., Packham J. & Ford C., 2003. Economic impact and linkages of the local health sector on the economy of Carson City, Nevada, 2000. Department of Resource Economics, UNiversity of Nevada, Reno.

  • Hoyt H., 1949. The economic base of the Brockton. Massachusetts Area, Brockton, Mass.

  • Isard W., 1960. Methods of regional analysis. MIT, Cambridge, Mass.

  • Isard W. & Kuenne R. E., 1953. The impact of steel upon the greater New York - Philadelphia industrial region: A study in agglomeration projection. Review of Economics and Statistics 35: 289-301.

  • Lloyd P. & Dicken P., 1977. Location in space: A theoretical approach to economic geography. Harper and Row, London.

  • Lynch T., 2000. Analyzing the economic impact of transportation projects using RIMS II, IMPLAN and REMI. Florida State University, Tallahassee.

  • Miller R. & Blair P., 1985. Input-output analysis: foundations and extensions. Prentice Hall, Englewood Cliffs, NJ.

  • Mulkey D. & Hodges A., 2003. Using Implan to assess local economic impact. University of Florida, Gainesville http://edis.ifas.ufl.edu

  • Philips K., Hamden K. & Lopez E., 2004. Gauging the impact of the San Antonio Toyota plant. Vista-South Texas Economic Trends and Issues, 1-4.

  • Propst D., 2000. Use of IMPLAN to assess economic impacts of recreation and tourism: Chronology and trends. www.prr.msu.edu/trends2000/papers_pdf/propst_implan.pdf

  • Rickman D. & Schwer K., 1995. A comparison of the multipliers of IMPLAN, REMI and RIMS II: Benchmarking ready-made models for comparison. Annals of Regional Science 29: 363-374.

  • Smith D. M., 1981. Industrial location: An economic-geographical analysis. John Wiley and Sons, New York.

  • Stryjakiewicz T. (ed.), 2004. Wpływ inwestorów zagranicznych na rozwój regionalny i lokalny na przykładzie GlaxoSmith-Kline Pharmaceuticals S. A. w Poznaniu (Impact of foreign investors on regional and local development: The case of GlaxoSmithKline Pharmaceuticals in Poznań). Bogucki Wydawnictwo Naukowe, Poznań.

  • Weisbrod G. & Weisbrod B., 1997. Measuring economic impacts of projects and programs. Economic Development Research Group, 1-11 www.edrgroup.com/pages/pdf/Econ-Impact-Primer.pdf

  • Wiedermann K., 2006. Czynniki i skutki rozwoju przemysłu motoryzacyjnego w skali lokalnej i regionalnej na przykładzie województwa śląskiego (Factors and effects of the development of automotive industry at the local and regional scale: The case of Silesian voivodeship). Ph.D. thesis, Institute of Geography and Spatial Management, Jagiellonian University, Kraków.

OPEN ACCESS

Journal + Issues

Search