Institutional Response to Economic Growth: Capital Markets in Britain to 1914

  • William P. Kennedy


It is becoming increasingly clear that the organisational structures of economic institutions evolve in response to the market environment in which the institutions operate. Thus, for example, Alfred Chandler has shown that the adoption by firms of the multi-divisional form of organisation in the US, beginning in the first quarter of the twentieth century, was an explicit response to the problems and opportunities of rapid growth and change in the US economy.1 It is similarly becoming clear that the relationship over time between the organisational structure of such economic institutions as firms and banks and economic development is not simply one in which the impact of growth and change determines institutional structure but rather it is one in which the suitability of the organisational structure adopted by institutions affects the ability of the economy to achieve and maintain a satisfactory rate of economic growth as well.


Capital Market Foreign Investment Stock Exchange Capital Formation Limited Liability 
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© Palgrave Macmillan, a division of Macmillan Publishers Limited 1976

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  • William P. Kennedy

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