Rent gaps, gentrification and the “two circuits” of Latin American urban economies

Richmond, Matthew ORCID: 0000-0002-1563-3615 and Garmany, Jeff (2023) Rent gaps, gentrification and the “two circuits” of Latin American urban economies. Tijdschrift Voor Economische En Sociale Geografie. ISSN 0040-747X

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Abstract

Recent research in Latin America, and our own analysis of Brazilian cities, indicate that aspects of rent gap theory – in particular, the assumption that strong links exist between rent gaps and gentrification – do not fully account for observed empirical conditions. Drawing on Milton Santos' theory of “two circuits” of urban economies in the global South, we seek to develop an expanded framework better suited to explaining the Latin American context. Specifically, we argue that important socio-spatial processes combine to embed what Santos called the “lower circuit” in certain parts of the city. This “territorialisation” of space by the lower circuit impedes the entry of the upper circuit, thus constraining expected rent gap capture and gentrification. We argue that only by taking both circuits into account, and considering how they become territorialised in urban space, can we properly grasp the relationship between rent gaps and gentrification in Latin American cities.

Item Type:	Article
Official URL:	https://onlinelibrary.wiley.com/journal/14679663
Additional Information:	© 2023 The Author(s).
Divisions:	IGA: Latin America and Caribbean Centre
Subjects:	G Geography. Anthropology. Recreation > G Geography (General) H Social Sciences > HB Economic Theory H Social Sciences
JEL classification:	R - Urban, Rural, and Regional Economics > R0 - General > R00 - General
Date Deposited:	09 Mar 2023 14:45
Last Modified:	12 Dec 2024 03:38
URI:	http://eprints.lse.ac.uk/id/eprint/118373

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