Multiplier effect

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Multiplicity - a feedback phenomenon that involves the development of many different businesses (economic activity) under the influx of additional consumer and supplier demand resulting from the launch or expansion of a business. Multiplier effects are beneficial to the development of the local economy.

You can also talk about negative multiplier effects in the event of a local economic crisis as a result of closing or reducing production in an enterprise.

Spatial range of multiplier effects can be:

In the latter case, we are dealing with the spread of multiplier effects to a given region (from the perspective of the environment) or leaks of multiplier effects from a given locality.

wiki

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