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Written by leading scholars in the field, this book presents 'state of the art' research in an accessible style and offers fresh interpretations on such key and controversial issues as the impact of the Union of 1707, the Clearances, the rise and fall of Scottish heavy industry and the recent transformation of the modern economy. The distinctive features of the Scottish economic system are stressed, but these are also analyzed within a British and international context. The focus of the volume is both broad and detailed with full treatment of agriculture, finance, industry, and the service sector as well as the impact of momentous economic changes on the lives of the people and the massive new role in the twentieth century of the state in economic affairs. At a time of intense debate on Scotland's future, this book provides the essential background and the long-run perspectives on the challenges and opportunities facing the nation.