ABSTRACT
Up to now market size has been considered primarily in relation to invention, but Adam Smith emphasised the advantages of a large market because of the potential it offered for the division of labour: ‘Smithian growth’. Market size depended on the effective integration of local markets into regional markets, and of these into a national market which in turn could be integrated internationally. All these processes, particularly national and international integration, were heavily influenced by transport change. These topics, and their relationship to the process of industrialisation, form the agenda for this chapter.
