The theory of surplus labour implied that industrialization could achieve large profits in its early stages, which could later be reinvested in technology adaptation or endogenous innovations, making economic development a self-sustaining project.

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The theory of surplus labor, often associated with classical economists like Adam Smith and later Karl Marx, suggests that in the early stages of industrialization, the abundance of labor allows for the production of goods at lower costs, leading to higher profits. These profits can then be reinvested in technological advancements and innovations, which further drive economic development, making it a self-sustaining process.

The Theory of Surplus Labour Implied That Industrialization Could Achieve