It may be noted that unlike Marshall, Young was not simply concerned with the factors that raise productivity or cost-reduction within an individual industry as it expands but explained the increase in productivities in interrelated industries of the economy as a whole.
Google Scholar Rostow, W. That is, he extended his division of labour to the international level.
Sequence of Development: According to Adam Smith, the natural course of development is first agriculture, then industry and finally commerce. Their greatest obstacle to economic development is the deficiency of capital.
Fixed capital consists of all the means of production. He advocated free trade as it would increase the size of market for goods produced by different countries to reap benefits of higher degree of division of labour.
However, he also pointed out that there is limit to the economic development which ultimately lands a free market economy in a stationary state in which further capital accumulation ceases to take place and therefore there is no more growth of the economy.
The development of agriculture leads to increase in construction works and commerce.