Economic Spillover

Economic spillover refers to the effects that economic activities in one area can have on neighboring regions or sectors. For example, if a new factory opens in a city, it may create jobs, increase local spending, and boost nearby businesses. This positive impact can extend beyond the immediate area, benefiting suppliers and consumers in surrounding regions. Conversely, negative spillovers can occur when economic decline in one area leads to loss of jobs and reduced spending in others. Essentially, economic spillovers highlight the interconnectedness of economies and how actions in one place can ripple outwards.