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# Agricultural Spatial Inequality

## Definition

The economic disparities between regions created by differences in natural advantages, institutional arrangements, and market access that determine agricultural productivity and prosperity, which Smith argues were exacerbated rather than mitigated by medieval regulations.

## Source Chapter

Book III, Chapter 2

## Context

Smith shows how medieval institutions created and perpetuated agricultural inequalities between regions, with naturally advantaged areas prevented from exploiting their advantages while disadvantaged areas lacked the institutional framework to overcome their limitations through trade and specialization.

## Economic Domain

Exchange

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