# Economic Connectivity Importance

## Definition

The critical role that connections between different markets and regions play in enabling division of labour, specialisation, and economic development. Economic connectivity importance is demonstrated by how improved connections dramatically expand market extent and economic possibilities.

## Source Chapter

Book I, Chapter 3

## Context

Smith's detailed analysis of how water-carriage connects distant markets, how navigable rivers create inland connectivity, and how political barriers can obstruct economic connections, illustrates the fundamental importance of economic connectivity to development.

## Economic Domain

Exchange

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