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The Secondary Circuit of Capital Reconsidered: Globalization and the U.S. Real Estate Sector

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Abstract:

Many scholars have focused on globalization within the "primary" (manufacturing) circuit of capital investment but little scholarship has examined the impact of globalization within the "secondary" (land and real estate) circuit. I evaluate competing explanations of globalization by investigating the restructuring of U.S. real estate industry over the last few decades. The discussion addresses: (1) changing real estate flows and foreign direct investment (FDI) in U.S. real estate; (2) the role of government-sponsored enterprises (GSEs) in shaping the organization of global housing investment flows through the development of a secondary mortgage market; and (3) the contradictions and consequences of the increasing enmeshment of real estate and housing markets into global systems of finance. The rapidly changing nature of real estate finance suggests that the secondary circuit is becoming increasing differentiated, specialized, and segmented as property markets and financial mechanisms are increasingly disembedded from national systems of regulation. The analysis suggests the need for refinement of the globalization thesis concerning the reorganization of real estate markets and housing finance, greater empirical specificity of the consequences of globalization, and an appreciation of the irrationalities and contradictions of globalization.

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global (177), real (135), estat (131), capit (88), market (84), state (82), mortgag (78), hous (77), new (56), invest (55), financ (52), 2001 (49), secondari (43), u.s (43), 2000 (42), develop (41), urban (40), 0 (40), nation (40), 1999 (37), mae (37),

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Globalization, real estate, housing
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Name: American Sociological Association
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Gotham, Kevin. "The Secondary Circuit of Capital Reconsidered: Globalization and the U.S. Real Estate Sector" Paper presented at the annual meeting of the American Sociological Association, Atlanta Hilton Hotel, Atlanta, GA, Aug 16, 2003 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p108192_index.html>

APA Citation:

Gotham, K. F. , 2003-08-16 "The Secondary Circuit of Capital Reconsidered: Globalization and the U.S. Real Estate Sector" Paper presented at the annual meeting of the American Sociological Association, Atlanta Hilton Hotel, Atlanta, GA Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p108192_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: Many scholars have focused on globalization within the "primary" (manufacturing) circuit of capital investment but little scholarship has examined the impact of globalization within the "secondary" (land and real estate) circuit. I evaluate competing explanations of globalization by investigating the restructuring of U.S. real estate industry over the last few decades. The discussion addresses: (1) changing real estate flows and foreign direct investment (FDI) in U.S. real estate; (2) the role of government-sponsored enterprises (GSEs) in shaping the organization of global housing investment flows through the development of a secondary mortgage market; and (3) the contradictions and consequences of the increasing enmeshment of real estate and housing markets into global systems of finance. The rapidly changing nature of real estate finance suggests that the secondary circuit is becoming increasing differentiated, specialized, and segmented as property markets and financial mechanisms are increasingly disembedded from national systems of regulation. The analysis suggests the need for refinement of the globalization thesis concerning the reorganization of real estate markets and housing finance, greater empirical specificity of the consequences of globalization, and an appreciation of the irrationalities and contradictions of globalization.

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Document Type: .PDF
Page count: 45
Word count: 11662
Text sample:
1 The Secondary Circuit of Capital Reconsidered: Globalization and the U.S. Real Estate Sector Kevin Fox Gotham Ph.D. Department of Sociology Tulane University 220 Newcomb Hall New Orleans LA 70118 Phone: (504) 862-3004 Fax: (504) 865-5544 email: kgotham@tulane.edu 1 The Secondary Circuit of Capital Reconsidered: Globalization and the U.S. Real Estate Sector ABSTRACT Many scholars have focused on globalization within the “primary” (manufacturing) circuit of capital investment but little scholarship has examined the impact of globalization within the “secondary”
G. Quercia and George Galster. 2000. “The Impact of Secondary Mortgage Market Guidelines on Affordable and Fair Lending: A Reconnaissance from the Front Lines.” Review of black Political Economy. 28(2): 29-53. Fall 2000. Teplin Albert. 2001. “The U.S. Flow of Funds Accounts and Their Uses.” Federal Reserve Bulletin. July 2001. Thrift N. 1987. “The Fixers: Urban Geography of International Commercial Capital.” in J. Henderson and M Castells (eds.). Global Restructuring and Territorial Development. London: Sage. Tilly Charles. 1995. “Globalization


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