# Transportation Infrastructure Importance

## Definition

The critical role that transportation systems play in determining market extent, facilitating exchange, and enabling the division of labour. Transportation infrastructure importance is demonstrated by how different modes of transport create vastly different market sizes and economic opportunities.

## Source Chapter

Book I, Chapter 3

## Context

Smith's detailed comparison of water-carriage and land-carriage, and his analysis of how navigable rivers, canals, and coastal access determine economic development patterns, illustrates the fundamental importance of transportation infrastructure to economic organisation.

## Economic Domain

Exchange

---