861 B
861 B
Territorial Improvement Support
Definition
The natural limit on urban growth imposed by the productive capacity of surrounding territory, where towns cannot expand beyond what local agricultural improvement can sustain until the entire territory is cultivated. This constraint reflects the fundamental dependence of urban populations on rural surplus production.
Source Chapter
Book III, Chapter 1
Context
Smith uses this concept to explain why urban development naturally follows agricultural improvement and why towns in new territories remain small until surrounding lands are fully cultivated, demonstrating the inherent limitations of urban growth without agricultural surplus.
Economic Domain
Production