«Lectures on Jurisprudence» in the Context of the Development of Adam Smith’s Economic Theory

The contradiction in Adam Smith’s views on human nature, as outlined in his works published during his lifetime, “The Theory of Moral Sentiments” (1759) and “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776), prompted economists to study the development of the ideas of the Scottish economist. Representatives of the Old German Historical School in the mid-19th century were the first to suggest that Smith’s acquaintance with the physiocrats’ ideas during his travels in France significantly influenced his economic theory and explains the differences between “The Theory of Moral Sentiments” and “The Wealth of Nations”. This hypothesis became known as the “French Connection Theory”. Significant development in understanding of the evolution of Smith’s ideas comes from his previously unpublished works. Thus, the lecture notes that Smith delivered as part of his course on moral philosophy at the University of Glasgow were first published in 1896. Those “Lectures on Jurisprudence, Police, Revenue, and Arms” also included the early version of his economic theory. This paper studies the development of Adam Smith’s economic ideas based on the “Lectures on Jurisprudence”. The analysis results in a clearer distinction between Smith’s original ideas and those he drew from physiocrats, thus refining the “French Connection Theory”. The paper shows that even before becoming acquainted with the physiocrats’ theory, Smith formulated the main theses on division of labor, pricing, and critics of the mercantilist system. However, the study confirms a significant influence of the physiocrats on the development of Smith’s theory. The reception of French ideas resulted in formulation of theories of natural value, distribution, and capital in “The Wealth of Nations”. Thus, we cannot completely refute the “French Connection Theory” hypothesis.