A type of economic growth that reflects increase in trade: expansion of markets, rising volume of trade and deeper division of labor. Smithian growth, as a concept, was introduced by Adam Smith (in the Wealth of Nations) and subsequently further studied by Alfred Marshall and others.
This type of growth focuses solely on the division of labor (or specialization) as a main driving force for economic expansion over time. Division of labor leads to increased productivity of labor force through learning by doing things in a direct way. The process of specialization is not confined to workers, as also firms can further specialize, creating specialized trades.
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