Premium
Adam Smith's “tolerable administration of justice” and the Wealth of Nations
Author(s) -
Irwin Douglas A.
Publication year - 2020
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/sjpe.12229
Subject(s) - adam smith , division of labour , economics , economic justice , administration (probate law) , productivity , politics , property rights , investment (military) , intellectual property , labour economics , law and economics , market economy , neoclassical economics , law , economic growth , political science , microeconomics
Abstract Adam Smith argues that a country’s income depends on its labor productivity, which in turn hinges on the division of labor. But why are some countries able to take advantage of the division of labor and become rich, while others fail to do so and remain poor? Smith describes how the security of property rights, through a “tolerable administration of justice,” allows investment and exchange to take place, bringing about economic progress. Recent empirical work on economic development has supported Smith’s emphasis on a country’s political “institutions,” particularly the judiciary, in determining its national income.