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# Colonial Economic Development Sequence

## Definition

The typical pattern of economic progression in new colonies, beginning with agriculture due to land abundance, followed by rudimentary manufacturing for local needs, and eventually developing more sophisticated industry as population and markets grow. This sequence reflects the natural exploitation of comparative advantages.

## Source Chapter

Book IV, Chapter 7

## Context

Smith uses the colonial development sequence to demonstrate how natural economic forces operate when unimpeded by artificial restrictions. He argues that monopoly policies interfere with this natural progression, forcing colonies into economically suboptimal development paths.

## Economic Domain

Production

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