noun
ripple effect; spillover effect
Refers to the indirect or secondary effects of an event or action, spreading outward like ripples. Common in economics, social sciences, and general discussion of consequences.
その政策の波及効果は予想以上に大きかった。
The ripple effect of that policy was greater than expected.
大企業の倒産は地域経済に波及効果をもたらした。
The bankruptcy of the large corporation had a spillover effect on the local economy.
Compound of 波及 (ripple, spread) and 効果 (effect). The term is a modern yojijukugo used primarily in technical and formal contexts.