Though the spill over effect can take place through multiple channels, it mostly gets transmitted through the commerce or trade channel, through the capital flows channel and through the confidence channel. 13. As stated earlier, the falling exports for a prolonged period is an issue that needs serious attention.
Although his vast and systematic work is often considered as the founding act of economics, Smith was not actually the first to set out this concept. Anders Chydenius from Sweden was ahead of him here, and his pamphlet ‘The National Gain’, was published a few years before Smith’s book. However, the history of thinking is dotted with similar ideas, from ancient times onwards.