Spatial scale, backward linkages, and economic multipliers

Abstract

Many empirical analyses of economic impacts are complicated by the use of different spatial scales. In the context of economic base theory, backward linkages from an event being studied can extend from the local to the global scale, inducing varying degrees of leakages and hence different estimates of multiplier effects. This article opens with a review of the ways in which scale, linkages, and multipliers are intertwined. Second, it offers a case study using an input–output analysis of the closure of Homestead Air Force Base in Florida to illustrate how the choice of different spatial scales can dramatically alter empirical results. The conclusion discusses criteria that may assist applied geographers in choosing the optimal spatial scale to deploy. © 1998 John Wiley & Sons, Inc.