Secondary sector of the economy
Economic sectors |
---|
Three-sector theory |
Primary sector: raw materials Secondary sector: manufacturing Tertiary sector: services |
Additional sectors |
Quaternary sector: information services Quinary sector: human services |
Theorists |
AGB Fisher · Colin Clark · Jean Fourastié |
Sectors by ownership |
Business sector · Private sector · Public sector · Voluntary sector |
The secondary sector of the economy includes those economic sectors that produce a finished, usable product production and construction.
This sector generally takes the output of the primary sector and manufactures finished goods or where they are suitable for use by other businesses, for export, or sale to domestic consumers. This sector is often divided into light industry and heavy industry. Many of these industries consume large quantities of energy and require factories and machinery to convert the raw materials into goods and products. They also produce waste materials and waste heat that may pose environmental problems or cause pollution. The secondary sector supports both the primary and tertiary sector.
Some economists contrast wealth-producing sectors in an economy such as manufacturing with the service sector which tends to be wealth-consuming.[1] Examples of service may include retail, insurance, and government. These economists contend that an economy begins to decline as its wealth-producing sector shrinks.[2] Manufacturing is an important activity to promote economic growth and development. Nations that export manufactured products tend to generate higher marginal GDP growth which supports higher incomes and marginal tax revenue needed to fund the quality of life initiatives such as health care and infrastructure in the economy. The field is an important source for engineering job opportunities. Among developed countries, it is an important source of well paying jobs for the middle class to facilitate greater social mobility for successive generations on the economy
Economy | Countries by industrial output in 2015 (billions in USD) |
---|---|
(01) China | 4,922 |
(02) United States | 3,752 |
(03) Japan | 1,164 |
(04) Germany | 1,016 |
(05) United Kingdom | 588 |
(06) India | 559 |
(07) South Korea | 555 |
(08) France | 479 |
(09) Italy | 456 |
(10) Brazil | 453 |
(11) Mexico | 448 |
(12) Canada | 440 |
(13) Russia | 427 |
(14) Indonesia | 408 |
(15) Saudi Arabia | 387 |
(16) Australia | 362 |
(17) Spain | 312 |
(18) United Arab Emirates | 214 |
(19) Turkey | 202 |
(20) Switzerland | 184 |
The twenty largest countries by industrial output in 2015, according to the IMF and CIA World Factbook. |