Secondary sector of the economy

The secondary sector of the economy or industrial sector includes those economic sectors that create a finished, tangible product: production and construction.

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 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.

. . . .

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 of the economy.

List of countries by Industrial output

Below is a list of countries by industrial output in 2010. Output is in millions of US$.

See also

• Manufacturing
• Three-sector hypothesis
• Industrial policy
• De-industrialization crisis
• Industry information

References