Outside the big box

Tuesday, September 25, 2007

Local businesses circulate money within a regional economy. They account for what economists call "the multiplier". One critical dimension of economic development involves increasing the velocity of the dollars circulated among these local businesses.

Here's an interesting commentary from an economist, based in Oregon. He points to studies completed by consulting firm in Austin, Texas, that compare the impact of consumer purchases between the big-box regional chains and locally owned retailers. Read more.

If you're interested in learning more about this strategy of economic development, I recommend a web site based in the United Kingdom, called Plugging the Leaks. Visit the web site here.

posted by Ed Morrison |

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