Re-Examining the Development of Hirschman’s Linkage Analysis with Detection of Smithian Flavor

Hirschman’s production linkage (PL) framework has enjoyed a revival of interest since the 1980s, but its complexity and richness have been continually underappreciated. This paper clarifies these, especially the role played by joint PLs, and includes some Smithian flavor, in that the activation of PLs is analogous to extending the division of labor in an economy, and can raise productivity and augment wealth accumulation à la Smith. Consumption...