Thus, less goods and services would have to be imported. Thus, a larger percentage of the expenditures would stay within the region and thus lead to further linkage effects and income inducements within the region. Conversely, a weak comparative advantages would lead to higher self-sufficiency and higher multipliers.
Processes associated with the multiplier occur over time.
Thus, if one allows for longer periods of time for the multiplier effects to work themselves out, the multiplier can be considered to be larger. Correspondingly, the endogenous part of the model increases just like larger regions increases the endogenous model content. One important difference between the temporal and spatial facets of the multiplier is associated with the phenomenon that multiplier effects may precede the actual stimulus due to the fact that business and consumption decisions are based not just on monetary earning flows and transactions but also on information flows leading to expectations and thereby to decisions which can affect expenditures or employment changes before the cause has been consummated. A spatial analogy does not appear to exist. Tim Chapin's Economic Base Analysis Page Introduction to Econ Base Multipliers Structural Change and Import Substitution in Chicago .