The aim of this paper is to reconstruct the theory of division of labour and economic growth proposed by Adam Smith and developed by Alfred Marshall and Allyn Young. In their approach division of labour is the main engine of growth and plays a central role in capital accumulation and technological progress. We suggest that, according to their theory: 1) economic growth is endogenous; 2) it has the nature of a cumulative, pathdependent process; and 3) it can be described as a disequilibrium process, supported by competitive forces. We argue that these aspects make the contributions of Smith, Marshall and Young still insightful for the development of growth theory, even in the light of the modern approach of endogenous growth theory.

Lavezzi, A.M. (2003). Smith, Marshall and Young on division of labour and economic growth. EUROPEAN JOURNAL OF THE HISTORY OF ECONOMIC THOUGHT, 10(1), 81-108.

Smith, Marshall and Young on division of labour and economic growth

LAVEZZI, Andrea Mario
2003-01-01

Abstract

The aim of this paper is to reconstruct the theory of division of labour and economic growth proposed by Adam Smith and developed by Alfred Marshall and Allyn Young. In their approach division of labour is the main engine of growth and plays a central role in capital accumulation and technological progress. We suggest that, according to their theory: 1) economic growth is endogenous; 2) it has the nature of a cumulative, pathdependent process; and 3) it can be described as a disequilibrium process, supported by competitive forces. We argue that these aspects make the contributions of Smith, Marshall and Young still insightful for the development of growth theory, even in the light of the modern approach of endogenous growth theory.
2003
Settore SECS-P/04 - Storia Del Pensiero Economico
Lavezzi, A.M. (2003). Smith, Marshall and Young on division of labour and economic growth. EUROPEAN JOURNAL OF THE HISTORY OF ECONOMIC THOUGHT, 10(1), 81-108.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10447/49381
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