Adam Smith’s Wealth of Nations and Economic History

Abstract

The paper illustrates the role of the historical element in Adam Smith’s Wealth of Nations (WN) and stresses the link between WN and economic history. It demonstrates that Smith’s political economy is grounded in his historical criticism, a distinctive feature of the Scottish historical school. In addition, the paper discusses the WN's twofold historical dimension. Firstly, it shows that Smith’s political economy draws on various historical sources to verify and refine his theoretical reasoning. This usage renders the WN an early piece of economic history proper. Secondly, it argues that Smith’s observations, recordings, and factual data are a valuable body of evidence for understanding the economic history of the late eighteenth century. Today, 250 years after its appearance, WN continues to highlight Smith’s critical contribution: the importance and role of the historical element in understanding economic phenomena.