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LOCAL MULTIPLICATOR EFFECT

The local multiplier effect, or the root-scoring effect of local economic activities, reflects a territory’s ability to disseminate the wealth created within its territory. If ensuring the attractiveness and competitiveness of a territory is essential for capturing more wealth abroad, local efforts only make sense if they have a long-term impact on the local economic fabric. That is, it could foster employment, social cohesion or territorial resilience. With respect to the territories and companies which seek to invest in local development, the challenge is to encourage the diversification of the economic fabric towards the most promising local markets.

This study was designed with LOCAL SHIFT® developed by Arnaud Florentin. This model is based on the input-output tables formalized by Nobel Prize winner Vassily Leontief and calibers them on a given territory in order to “territorialize” them. These tables enable to apprehend each economic agent (a company, an association, a public actor, a household) as both “supplier” and “applicant”.