Urban economy circuits and finance spreading within the territory: An analysis in the city of Olavarria, Buenos Aires

Abstract

The social, economic and productive processes whichtake place in the Argentine territory and cities, within today's globalization, can be understoodthrough the urban economy theory of circuits [Santos, 1975, 1979]. The coexistenceof labor territorial divisionsin the city could explain the presence of a higherand a lower circuit which, in various ways, are the result of a technological modernization and which play an important rolein the economic process as well as in the space organization process. The role of the credit financial system is analyzed as alink between both circuits. Different financial instruments enabling the financing of society and territory are examined togetherwith the variouseffects that credit and consumptionhave in the city of Olavarrí­a