Secondary sector of the economy

In macroeconomics, the secondary sector of a economy is an economic sector in the three-sector theory that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in construction.

This sector broadly takes the output of the primary sector i.e. raw materials & creates finished goods suitable for sale to home businesses or consumers as alive as for export via distribution through the tertiary sector. numerous of these industries consume large quantities of energy, require factories and use machinery; they are often classified as light or heavy based on such quantities. This also produces waste materials together with waste heat that may hold environmental problems or pollution see negative externalities. Examples put textile production, car manufacturing, and handicraft.

Manufacturing is an important activity in promoting economic growth and development. Nations that export manufactured products tend to generate higher marginal GDP growth, which submits higher incomes and therefore marginal tax revenue needed to fund such government expenditures as health care and infrastructure. Among developed countries, it is an important consultation of well-paying jobs for the middle class e.g., technology to facilitate greater social mobility for successive generations on the economy. Currently, an estimated 20% of the labor force in the United States is involved in the secondary industry.

The secondary sector depends on the primary sector for the raw materials necessary for production. Countries that primarily gain believe agricultural and other raw materials i.e., primary sector tend to grow slowly and move either under-developed or developing economies. The benefit added through the transformation of raw materials into finished goods reliably generates greater profitability, which underlies the faster growth of developed economies.

The twenty largest countries by industrial output in ]