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# Market Proximity Advantage

# Definition

The economic benefit enjoyed by producers located near market towns, who receive the full value of their produce while saving transportation costs that must be borne by more distant producers. This advantage creates higher land values near markets and influences the spatial distribution of agricultural development around urban centers.

## Source Chapter

Book III, Chapter 1

## Context

Smith uses this proximity advantage to explain observed patterns of land cultivation and value, demonstrating how market access creates economic incentives that shape the geographic organization of agricultural production.

## Economic Domain

Exchange

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