THE RISE OF CORPORATIONS AND THE DEVELOPMENT OF AMERICAN ECONOMY, 1850-1930 Hu Guocheng（7） Corporations rose in American economy in the 1850s and soon became the main form of industrial organizations. The rise and spread of corporations accelerated the development of American economy. This paper examines the process of evolution of corporations, explores the causes of their rise and their positive/negative impacts on U.S. economy, and shows the necessity of the state's intervention and regulation in corporate activities.