The concept of multiplier effect in determining the influence of enterprises on their socio-economic environment
DOI:
https://doi.org/10.24917/20801653.11.7Keywords:
efekt mnożnikowy, otoczenie społeczno-gospodarczeAbstract
The subject of this paper is presentation of a method of calculating multiplier effects in order to determine the influence of enterprises on their environment. Emergence or development of economic activity in a given area may bring about an increase in income and employment in many other enterprises, as well as to an increase taxes collected by the local authority. This increase is labelled multiplier effects, and its value enables the evaluation of the enterprise’s activity on the functioning of neighbouring firms.In literature, the most frequently discussed types of multiplier effects are the supply and income effects. The first result from the demand created by the emerging and developing enterprises, which fosters the development of their goods and services suppliers. The second type, the income effects, result from the increase in purchasing power of the inhabitants, owing to the employees’ remuneration, and this means fostering the development of firms that satisfy consumers’ needs. These enterprises create greater demand themselves, thus triggering new cycles of multiplier effects.The calculation of created workplaces for the supply effects was conducted by using a designed algorithm. It allows calculating the new workplaces in the supplier firms on the bases of data concerning income of enterprises, participation of supply in the revenue, and employment-related costs. The growth of employment and payment is correlated with the increase in the income multiplier effects, generated by single enterprises. This work presents a scheme for calculation of new workplaces created as a result of new investments.Downloads
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