691 B
691 B
Colony Economic System Feedback Loops
Definition
The self-reinforcing mechanisms that characterize colonial economic development, where success in one area leads to opportunities in others, creating virtuous cycles of growth and prosperity.
Source Chapter
Book V, Chapter 3
Context
Smith describes how colonial economies develop through positive feedback loops, where initial advantages in agriculture lead to opportunities in manufacturing and commerce, which in turn support further agricultural development.
Economic Domain
Accumulation