Due to dependence on foreign capital. By 1914, foreigners owned half of the industry, and their profit exceeded investment. It is interesting why foreign capital actually replaced the Russian for modernization.
Russia's industry showed high profitability.
For example, southern metallurgical plants during the years of lifting (1900s) gave up to 34.1% (!!!) Profitable for fixed assets, of which 13-14% went to expand production. In the whole country, by 1911-1914. The average profit was 13%, and shareholders dividends - 6.6%. However, the elites spent a significant part of the income on their: the city bourgeoisie and the landowners expended 3 billion rubles annually. (20% of the national income of 1913) - the amount comparable to the production accumulation fund. That is, money for investment simply eating in the form of familiar annuity.
Investments compensated for foreign investments. By 1914, they reached 1.32 billion rubles. (47% of joint -stock capital). Through banks, foreigners controlled the key industries: 88% of metallurgy, 96% of shipbuilding, 81.2% of the car, 75% of the coal industry, 60% oil production, 80% of copper production. Profits were exported abroad: dividends in RI were 20-30% (against 4-5% in Europe). In 1887-1913 The net profit of foreign investors (2.3 billion rubles) by 30% exceeded invested funds. You have to pay for other people's money if they go past investments in Capex.
