Three-sector theory. Industrial output in 2005 Service output in 2005 According to the theory, the main focus of an economy's activity shifts from the primary, through the secondary and finally to the tertiary sector.
Fourastié saw the process as essentially positive, and in The Great Hope of the Twentieth Century he writes of the increase in quality of life, social security, blossoming of education and culture, higher level of qualifications, humanisation of work, and avoidance of unemployment. Countries with a low per capita income are in an early state of development; the main part of their national income is achieved through production in the primary sector. Countries in a more advanced state of development, with a medium national income, generate their income mostly in the secondary sector. Structural transformation according to Fourastié Three sectors according to Fourastié Clark's sector model This figure illustrates the percentages of a country's economy made up by different sector.
See also Primary sector of the economy. Product’s lifecycle The primary sector of the economy is the sector of an economy making direct use of natural resources.
This includes agriculture, forestry, fishing, mining, and extraction of oil and gas. This is contrasted with the secondary sector, producing manufactured goods, and the tertiary sector, producing services. The primary sector is usually most important in less developed countries, and typically less important in industrial countries. The manufacturing industries that aggregate, pack, package, purify or process the raw materials close to the primary producers are normally considered part of this sector, especially if the raw material is unsuitable for sale or difficult to transport long distances. Primary industry is a larger sector in developing countries; for instance, animal husbandry is more common in Africa than in Japan. Mining in 19th century South Wales is a case study of how an economy can come to rely on one form of business.
Secondary sector of the economy. Product’s lifecycle Function This sector generally takes the output of the primary sector and manufactures finished goods.
These products are then either exported or sold to domestic consumers and to places where they are suitable for use by other businesses. This sector is often divided into light industry and heavy industry. Many of these industries consume large amounts of energy and require factories and machinery to convert the raw materials into goods and products. List of countries by industrial output References Tertiary sector of the economy. The tertiary sector of the economy (also known as the service sector or the service industry) is one of the three economic sectors, the others being the secondary sector (approximately the same as manufacturing) and the primary sector (agriculture, fishing, and extraction such as mining).
Service sector The major growth in this sector also involves the transfer of funds from the governmental to the contractual profit, non-profit and hybrid sectors of the economy. For the last 100 years, there has been a substantial shift from the primary and secondary sectors to the tertiary sector in industrialised countries. This shift is called tertiarisation. The tertiary sector is now the largest sector of the economy in the Western world, and is also the fastest-growing sector. Quaternary sector of the economy. The quaternary sector of the economy is a way to describe a knowledge-based part of the economy which typically includes services such as information generation and sharing, information technology, consultation, education, research and development, financial planning, and other knowledge-based services. The term has been used to describe media, culture, and government. "Quaternary sector" is a further delineation of the three-sector hypothesis of industry in the sense that the quarternary sector refers to a part of the third or tertiary sector along with the quinary economic sector.
It has been argued that intellectual services is distinct enough to warrant a separate sector and not be considered merely as a part of the tertiary sector. This sector evolves in well developed countries and requires a highly educated workforce. According to some definitions, the quaternary sector includes other pure services, such as the entertainment industry. References