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All else being equal, the size of an economy seems to be proportional to the size of the networks of people and things that make up the economy. For example, c
by cs702 10y ago
All else being equal, the size of an economy seems to be proportional to the size of the networks of people and things that make up the economy. For example, countries with larger populations tend to have larger economies, and countries with better communications and transportation infrastructure tend to have larger economies.
It makes sense. The better and more extensive the networks that make up the economy, the easier it is to meet, transact, collaborate, move physical and digital goods back and forth, teach and learn from others, expand markets, compete, etc.
As people and things become more connected physically and digitally, the networks that make up the economy get larger -- by definition.