According to Joel Mokyr, economic growth before the Industrial Revolution was primarily about Smithian growth, which is driven by specialization and trade.
The correct answer and explanation is:
Correct Answer: True
Explanation:
Joel Mokyr, a renowned economic historian, explains that economic growth before the Industrial Revolution was largely characterized by what is known as Smithian growth. This term is derived from Adam Smith’s ideas, particularly those in The Wealth of Nations, where specialization and trade are central drivers of economic progress.
Smithian growth refers to the increase in productivity and economic output that occurs when individuals or regions specialize in producing certain goods or services, then trade with others to obtain different goods. This specialization leads to greater efficiency because producers become more skilled and can use resources more effectively. Trade allows regions to benefit from each other’s comparative advantages, accessing a wider variety of goods and services than they could produce on their own.
Before the Industrial Revolution, most societies experienced slow economic growth, but specialization and trade steadily expanded, especially in urban areas and between regions. Mokyr points out that Smithian growth relied heavily on the division of labor and market expansion, but was limited by the available technology and institutional constraints of the time.
This kind of growth contrasts with what Mokyr calls Boserupian growth (driven by population pressure leading to innovation) and Schumpeterian growth (driven by technological innovation and creative destruction, dominant after the Industrial Revolution).
In short, before the Industrial Revolution, economic progress was mainly about incremental improvements through specialization and trade — Smithian growth. It set the stage for the later, faster growth fueled by technological innovation during and after the Industrial Revolution. Mokyr highlights that understanding this distinction helps explain why growth was relatively slow for centuries but accelerated dramatically with new technological breakthroughs.