The economic consequence of an action, intended or otherwise. Once a location becomes established as a production centre, economies of agglomeration (which increase with increasing regional size) tend to give it permanent cost advantages over other locations. These scale and cost advantages are reinforced by the relatively higher wages paid to workers in the scale-intensive industries, which are thought to act, by means of a Keynesian income multiplier, as a stimulus to local markets, resulting in additional scale economies, which, in turn, lead to further growth of regional exports (Leichenko (2000) Econ. Geog. 76, 4).
Holloway and Kneafsey (2000) Sociologia Ruralis 40 argue that farmers’ markets provide a local multiplier effect. In services, Glückler (2005) Env. & Plan. A 37, 10 observes that continuous collaboration with a client may produce multiplier effects through client referrals and provide cheap access to new potential clients and future business. See Peck (2002) J. Econ. Geog. 2 on the multiplier effects of major factory closures: reduced demand, spending power, savings, and investment.