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Factory Productivity and the Concession System of Incorporation in Late Imperial Russia, 1894–1908

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  • Amanda G. Gregg

Abstract

In Imperial Russia, incorporation required an expensive special concession, yet over 4,000 Russian firms incorporated before 1914. I identify the characteristics of incorporating firms and measure the productivity gains and growth in machine power enjoyed by corporations using newly-constructed factory-level panel data compiled from Russian factory censuses. Factories owned by corporations were larger, more productive, and more mechanized than unincorporated factories. Higher productivity factories were more likely to incorporate and, after incorporating, added machine power and became even more labor productive. Russian firms sought the corporate form's full set of advantages, not just stock markets access, to obtain scarce long-term financing.

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  • Amanda G. Gregg, 2020. "Factory Productivity and the Concession System of Incorporation in Late Imperial Russia, 1894–1908," American Economic Review, American Economic Association, vol. 110(2), pages 401-427, February.
    • Handle: RePEc:aea:aecrev:v:110:y:2020:i:2:p:401-27
    DOI: 10.1257/aer.20151656
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    Cited by:

    1. Viktor Malein, 2021. "Human Capital and Industrialization: German Settlers in Late Imperial Russia," Working Papers 0221, European Historical Economics Society (EHES).
    2. Asmus, Gerda & Franck, Raphaël, 2022. "State Capacity, National Economic Policies and Local Development: The Russian State in the Southern Urals," CEPR Discussion Papers 17103, C.E.P.R. Discussion Papers.
    3. Kufenko, Vadim & Khaustova, Ekaterina & Geloso, Vincent, 2022. "Escape underway: Malthusian pressures in late imperial Moscow," Explorations in Economic History, Elsevier, vol. 85(C).
    4. Tan, Eugene & Zeida, Teegawende H., 2024. "Consumer demand and credit supply as barriers to growth for Black-owned startups," Journal of Monetary Economics, Elsevier, vol. 143(C).
    5. Amanda Gregg & Steven Nafziger, 2019. "Capital structure and corporate performance in late Imperial Russia," European Review of Economic History, European Historical Economics Society, vol. 23(4), pages 446-481.
    6. Gregg, Amanda & Nafziger, Steven, 2020. "Financing nascent industry: Leverage, politics, and performance in Imperial Russia," BOFIT Discussion Papers 7/2020, Bank of Finland Institute for Emerging Economies (BOFIT).
    7. Guinnane, Timothy W. & Schneebacher, Jakob, 2020. "Enterprise form: Theory and history," Explorations in Economic History, Elsevier, vol. 76(C).
    8. Richard Brooks & Timothy W. Guinnane, 2017. "The Right to Associate and the Rights of Associations: Civil-Society Organizations in Prussia, 1794–1908," NBER Chapters, in: Organizations, Civil Society, and the Roots of Development, pages 291-329, National Bureau of Economic Research, Inc.
    9. Tomohiro Machikita & Tetsuji Okazaki, 2019. "Transition to a Modern Regime and Change in Plant Lifecycles: A Natural Experiment from Meiji Japan," CIGS Working Paper Series 19-006E, The Canon Institute for Global Studies.
    10. Telmo Pérez‐Izquierdo & Elizaveta Pronkina, 2023. "Behind the curtain: How did women's work history vary across Central and Eastern Europe?," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(2), pages 465-489, April.
    11. Tomihiro Machikita & Tetsuji Okazaki, 2019. "Transition to a Modern Regime and Change in PlantLifecycles: A Natural Experiment from Meiji Japan," CIRJE F-Series CIRJE-F-1122, CIRJE, Faculty of Economics, University of Tokyo.
    12. repec:zbw:bofitp:2020_007 is not listed on IDEAS
    13. Nikita I. Lychakov & Dmitrii L. Saprykin & Nadia Vanteeva, 2020. "Not Backward: Comparative Labour Productivity In British And Russian Manufacturing, Circa 1908," HSE Working papers WP BRP 199/HUM/2020, National Research University Higher School of Economics.
    14. Cihan Artunç, 2024. "Legal origins of corporate governance: Choice of law in Egypt, 1887–1914," Economic History Review, Economic History Society, vol. 77(1), pages 3-40, February.
    15. Natkhov, Timur & Vasilenok, Natalia, 2021. "Skilled immigrants and technology adoption: Evidence from the German settlements in the Russian empire," Explorations in Economic History, Elsevier, vol. 81(C).

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913
    • N63 - Economic History - - Manufacturing and Construction - - - Europe: Pre-1913

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