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Ash Sharquiyah Travel on Theories of capital. Adam SMITH borrowed much his theory of capital from the Physiocrats and A.J.R. TURGOT. Smith’s view of fixed capital focused on its ability to contribute to the productivity of labor. Labor in Smith’s view, as he makes clear in the opening chapter of his Wealth of Nations on the division of labor, is the engine of economic progress. Ash Sharquiyah Travel 2016.