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Smith, Marshall and Young on division of labour and economic growth

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  • Andrea Lavezzi

Abstract

The aim of this paper is to reconstruct the theory of division of labour and economic growth proposed by Adam Smith and developed by Alfred Marshall and Allyn Young. In their approach division of labour is the main engine of growth and plays a central role in capital accumulation and technological progress. We suggest that, according to their theory: 1) economic growth is endogenous; 2) it has the nature of a cumulative, path-dependent process; and 3) it can be described as a disequilibrium process, supported by competitive forces. We argue that these aspects make the contributions of Smith, Marshall and Young still insightful for the development of growth theory, even in the light of the modern approach of endogenous growth theory.

Suggested Citation

  • Andrea Lavezzi, 2003. "Smith, Marshall and Young on division of labour and economic growth," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 10(1), pages 81-108.
    • Handle: RePEc:taf:eujhet:v:10:y:2003:i:1:p:81-108
    DOI: 10.1080/0967256032000043805
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    References listed on IDEAS

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    1. Brian J. Loasby, 1989. "The Mind and Method of the Economist," Books, Edward Elgar Publishing, number 288, March.
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    Cited by:

    1. Maiju Perälä, 2003. "'Looking at the Other Side of the Coin': The Relationship between Classical Growth and Early Development Theories," WIDER Working Paper Series DP2003-38, World Institute for Development Economic Research (UNU-WIDER).
    2. von Greiff, Camilo, 2007. "Specialization in Higher Education and Economic Growth," Research Papers in Economics 2007:13, Stockholm University, Department of Economics.
    3. Esmail M. A. Deryag & Wagdi Khalifa, 2024. "A Panel Analysis on the Nexus between Financial Development, Oil Production, and Trade-Openness and Its Impact on Sustainable Economic Growth: Evidence from Selected Arab Economies," Sustainability, MDPI, vol. 16(12), pages 1-16, June.
    4. Neri Salvadori & Rodolfo Signorino, 2013. "The Classical Notion of Competition Revisited," History of Political Economy, Duke University Press, vol. 45(1), pages 149-175, Spring.
    5. Ramesh Chandra, 2022. "Was Allyn Young a Marshallian?," Australian Economic Papers, Wiley Blackwell, vol. 61(2), pages 258-279, June.
    6. Bruno Tinel, 2013. "Why and How Do Capitalists Divide Labour? From Marglin and Back again through Babbage and Marx," Review of Political Economy, Taylor & Francis Journals, vol. 25(2), pages 254-272, April.
    7. Bruno Tinel, 2013. "Why and how do capitalists divide labor? From Marglin and back again through Babbage and Marx," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00763837, HAL.
    8. Bruno Tinel, 2013. "Why and how do capitalists divide labor? From Marglin and back again through Babbage and Marx," Post-Print hal-00763837, HAL.

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