The dynamics of Smithian growth

Morgan Kelly

Open Access publications from School of Economics, University College Dublin

Abstract: This paper analyzes the evolution of an economy where growth is driven by increased specialization caused by the geographical expansion of markets. It proves that such Smithian growth exhibits generic threshold behavior. Below a critical density of transport linkages, the economy is split into isolated local markets with limited specialization. Above the critical density, these markets begin to fuse into a large, economywide market causing growth to accelerate. This allows an explicit test of the consensus among historians of Sung dynasty China that the economic revolution during that period was a result of commercialization caused by the creation of a national waterway network.

Keywords: Economic development; Expertise; Markets (search for similar items in EconPapers)
Pages: 26 pages
Date: 1997-08
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Citations: View citations in EconPapers (69)

Published in: Quarterly Journal of Economics, 112(3) 1997-08

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http://hdl.handle.net/10197/521 Open Access version, 1997 (application/pdf)

Related works:
Working Paper: The Dynamics of Smithian growth (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:oapubs:10197/521

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