Multiplier Effect and Cumulative Causation - geography fieldwork
geographyfieldwork.com › MultiplierEffectJun 05, 2021 · Multiplier Effect or Cumulative Causation. The introduction of a new industry or the expansion of an existing industry in an area also encourages growth in other industrial sectors. This is known as the multiplier effect which in its simplest form is how many times money spent circulates through a country's economy. Money invested in an industry helps to create jobs directly in the industry, but it also creates jobs indirectly elsewhere in the economy.