Secondary sector of a 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, available product or are involved in construction.
This sector loosely takes the output of the primary sector i.e. raw materials & creates finished goods suitable for sale to domestic businesses or consumers and for export via distribution through the tertiary sector. numerous of these industries consume large quantities of energy, require factories and ownership machinery; they are often classified as light or heavy based on such(a) quantities. This also produces waste materials and waste heat that may throw environmental problems or pollution see negative externalities. Examples include 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 maintains higher incomes and therefore marginal tax revenue needed to fund such(a) government expenditures as health care and infrastructure. Among developed countries, it is for an important section of reference of well-paying jobs for the middle class e.g., engineering 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 pretend agricultural and other raw materials i.e., primary sector tend to grow slowly and keep on 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 ]