The circuits of capital model in a rural context: the case of Brookings County, South Dakota

The underlying reasons for growth in the built environment in rural communities are still open to considerable debate (Gottlieb 1994, Boyle and Halfacree 1998, Johnson et al. 2005). This study takes on an important issue in the rural sphere today: the role that developers, lenders, and realtors play in driving urbanization in rural places. David Harvey divides capitalist production into three interrelated circuits and argues that the oscillation of funds between them serves as an explanation for urbanization (Harvey 1978, 1982, 1985, 2001). The primary circuit is composed of the investment and production of consumer goods. The secondary circuit encompasses capital flows into the built environment essential to production (e.g. offices and factories) and to consumption (e.g. housing). The final circuit is composed of investment in technology and labor reproduction to enhance profits in the first two circuits (Wilson 1991). During times of economic crisis, investors faced with the prospect of diminishing returns in the primary circuit will attempt to move their funds into more profitable areas (Harvey 1985). Urbanization can be explained by the switch of funds from the primary circuit into the secondary circuit as investors chase new areas for profit. This study examines the applicability of the circuits of capital model in a rural context. Specifically, this study examines the temporal pattern of investment in the primary and secondary circuit in Brookings County, South Dakota. Key investors active in the secondary circuit are interviewed about their investment practices before and after a crisis in the local primary circuit. Results indicate an investment dynamic more complicated than described in the circuits of capital model. The theoretical and policy implications for this finding are discussed in the final chapter.

Name thesis:degree_name

M.S.

Level thesis:degree_level

Thesis

Discipline thesis:degree_discipline

Geography

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2014

Author dc:creator

• Aadland, Matthew

Contributors dc:contributor

• Wilson, David

• Circuits of Capital Model
• David Harvey
• Urbanization

Statement dc:rights

• Copyright 2014 Matthew Aadland

Language dc:language

en

Handle dc:identifier

http://hdl.handle.net/2142/49397

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/49397