Another reason to buy locally, in a review of the book, 'The Small-Mart Revolution: How Local Businesses Are Beating the Global Competition, by Michael Shuman:

The book addresses two theories of economic development, or two visions of capitalism: TINA (There Is No Alternative to luring big coporations to your town with millions of dollars in tax giveaways) and LOIS (Local Ownership and Import Substitution). Shuman argues that "LOIS" companies deliver their benefits to a community "more reliably and robustly" -- and are better for the environment.

If consumers and governments support locally owned businesses, one basic benefit is the multiplier effect. A dollar spent at a LOIS firm will likely stay in the community longer, multiplying its power. "The more times a dollar circulates within a defined geographic area and the faster it circulates without leaving that area, the more income, wealth and jobs it generates," says Shuman. He cites several studies showing that spending money at locally-owned businesses instead of national chains actually boosts the local economy more. One study in Austin, Texas showed that $100 spent at local bookstores ended up circulating $45 in Austin, while spending $100 at Borders ended up circulating just $13 in Austin.

The Small-Mart Revolution': Book Review, Dan Kulpinski, Down to Earth Blog, 17 Dec 2006

Hm, so the money I just spent at Adventures in Crime and Space, one of the most local of local bookstores, must have circulated locally big time.

So who is it that noticed this feature of local bookstores studied in Austin? Kulpinski is an AOL editor, so I wouldn't hazard a guess as to where he lives. Shuman appears to be operating out of Maine, through an organization in DC. Eventually I'm going to find something interesting in the Austin press about Austin....