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

  • William P. Kennedy

Abstract

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.

Keywords

Capital Market Foreign Investment Stock Exchange Capital Formation Limited Liability 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 1.
    Alfred D. Chandler Jr Strategy and Structure: Chapters in the History of the Industrial Enterprise ( Cambridge, Mass., 1962 ).Google Scholar
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    See Brinley Thomas, Migration and Economic Growth: A Study of Great Britain and the Atlantic Economy 2nd ed. (Cambridge, 1973) for a discussion of the relationships among domestic construction, foreign investment and emigration.Google Scholar
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    G. L. Ayers, ‘Fluctuations in New Capital Issues on the London Market, 1899–1913’ (unpublished M.Sc. Thesis, University of London, 1934) Table 13.Google Scholar
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    See G. L. Ayers, Fluctuations in New Capital Issues on the London Money Market, 1899–1913 (unpublished M.Sc. Thesis, University of London, 1934) Table 13.Google Scholar

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1976

Authors and Affiliations

  • William P. Kennedy

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