# North American Colonial Settlement Pattern

## Definition

The observed geographic pattern in which European plantations and settlements in North America concentrated along the sea-coast and the banks of navigable rivers, rarely extending to any considerable inland distance. Smith presents this as contemporary empirical evidence for his thesis that market access via water-carriage drives economic development and settlement.

## Source Chapter

Book 1, Chapter 3: "That the Division of Labour is Limited by the Extent of the Market"

## Context

Smith cites the colonial settlement pattern immediately after arguing that inland areas develop later than coastal ones. It serves as a bridge between his theoretical argument about water-carriage and his historical survey of ancient civilisations, showing that the same principle operates in the contemporary New World.

## Economic Domain

General Theory

## Smith's Original Wording

> "In our North American colonies, the plantations have constantly followed either the sea-coast or the banks of the navigable rivers, and have scarce anywhere extended themselves to any considerable distance from both."

## Modern Interpretation

This observation aligns with modern economic geography's finding that population density and economic activity correlate strongly with proximity to coasts and navigable waterways. It also reflects the broader principle that infrastructure access is a primary determinant of settlement patterns.