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# National Economic Identity

## Definition

The characteristic economic system and approach that defines a nation's method of generating wealth and organizing its productive activities. This identity is shaped by historical development, geographical circumstances, and the prevailing system of political economy adopted by the nation.

## Source Chapter

Book IV, Chapter 0

## Context

While not explicitly named by Smith, the concept emerges from his discussion of how different nations adopt different systems of political economy based on their stage of development and historical circumstances. This establishes the idea that nations develop distinct economic characteristics.

## Economic Domain

General Theory

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