The economic sectors correspond to the division of the economic activity of a State or territory, and include all stages of exploration of natural resources, up to industrialization, preparation for consumption, distribution, and commercialization of goods and services.
The classification of economic sectors is useful for understanding how all areas of production and commerce are related, as well as allowing us to understand the impact of a State’s economic policies on specific sectors of the economy.
The economy of a nation has been classified into the following economic sectors:
Primary sector. Secondary sector. Tertiary sector. Quaternary sector. Quinary sector.
In turn, each of these areas is subdivided into economic branches or sub-sectors, which make up all links in the productive chain.
Primary sector
The primary sector includes all activities for obtaining natural resources. This is linked to the agricultural, fishing, mining and forestry sub-sectors.
In this sector of the economy, primary products are obtained through extraction or production to supply materials, necessary for the secondary and tertiary sectors.
See also Primary sector.
Secondary sector
The secondary sector of the economy corresponds to the transformation of raw materials into industrialized products with high added value, into finished or semi-finished products, or into industrial machinery and tools.
In this sector, industrial activities, construction, food processing, the naval and aeronautical industry, etc. stand out.
See also Secondary sector.
Third sector
The tertiary sector is defined as the sector of commerce and provision of services, and is where the distribution and marketing of tangible and intangible goods takes place, such as the offer of services provided to companies or individuals. Commercial, banking, tourism services, etc. stand out in this sector.
See also Tertiary sector.
Quaternary sector
The quaternary sector can be considered a subdivision of the tertiary sector, and covers all those areas in which knowledge is capitalized as a good, but is impossible to mechanize. It includes intellectual activities related to research, development of science and technology projects, innovation and information. For example: consulting, the information industry, etc.
Quinary sector
Like the previous one, the quinary sector can be considered a subdivision of the tertiary. It covers those economic activities related to the creation, organization and interpretation of information and guidance in decision making applying new technologies.
The quinary sector also includes those economic activities that do not have profit purposes in themselves, but rather are aimed at solving regulatory needs, that is, mandatory, such as public education services, citizen security (police, civil protection and firefighters). , public health and culture. It also includes all types of economic activity registered by the action of different NGOs. Likewise, it includes domestic activity that cannot be measured formally.
Economic and social sectors
The economic and social sectors also intervene in the economy of a country, state or territory, and are classified into three sectors:
Public sector
The public sector includes all state organizations, and is made up of the three main powers of the State; executive, legislative and judicial power. This sector also includes state companies.
Private sector
The private sector encompasses all national private companies. That is, they are companies that carry out the economic activities of a country but are managed by a natural person. They frequently belong to the tertiary sector (provision of goods and services).
External sector
This sector includes foreign private companies that intervene in the national economy, such as transnational companies.
However, between these three sectors it is possible to obtain a JVdue to the combination of public and private capital, whether national or foreign.
See also: