Country Industry, Country Industries, Country Sector, Country Sectors

By: EconomyWatch   Date: 29 June 2010

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In economics, country industries are broadly divided into three categories - primary, secondary and tertiary. These categories are further classified into numerous sectors to form units of production. When these sectors are considered in a country-specific way, it can be referred to as country sector.

Country Industry: Primary Sector

The primary sector involves:

  • Production activities that transform natural resources into usable products

 

  • Animal husbandry, mining, forestry and fishing.

 

  • Agriculture and agro-based businesses is its most popular activity.

 

  • Majority of the production from the primary sector forms raw material for the manufacturing industry.

 

  • The primary sector contributes a major share of GDP in developing nations, especially in Africa.

Country Industry: Secondary Sector

Economic activities that involve manufacturing and construction are typically classified as part of the secondary sector. It draws on the input from the primary sector to manufacture finished goods that are ready to be used for sale, export or as input for other industries. The manufacturing sector is capital intensive. It requires a production unit and investment in technology to earn profits. A large amount of exports usually generates favorable trade and high GDP figures.

Some of the major industries in the secondary sector are:

  • aerospace
  • automotive
  • energy
  • brewery
  • textiles
  • steel
  • electronics

Country Industry: Tertiary Sector

The tertiary sector involves services that supplement the production and sale of goods, such as transportation, retail sale and distribution. Other specific services include legal practice, entertainment and medical services.

A number of economists also propose the theory of a quaternary sector to span information services, education and research and development

Country Industry: Major Sectors Per Nation

The country industry data and GDP composition spanning varied sectors across different nations are listed in the table below. The data is gathered from the CIA World Factbook, 2008.

Country Agriculture (%) Industry (%) Services (%)
Brazil 5.5 28.5 66
Canada 2 28.4 69.6
China 10.6 49.2 40.2
France 2.2 20.3 77.4
Germany 0.9 30.1 69
India 17.2 29.1 53.7
Italy 2 26.7 71.3
Japan 1.4 26.4 72.1
Russia 4.1 41.1 54.8
US 1.2 19.6 79.2
UK 0.9 22.8 76.2

 

Countries with the largest GDP share indicate a weak primary sector and a huge share in the service industry. In developing countries, however, agriculture is the largest contributor to the GDP. Their focus, in terms of economic growth, should be to make their presence felt more effectively in the service industry.

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