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Secondary sector of the economy

In macroeconomics, the secondary sector of the 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 generally takes the output of the primary sector (i.e. raw materials like metals, wood) and creates finished goods suitable for sale to domestic businesses or consumers and for export (via distribution through the tertiary sector). Many 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 and waste heat that may cause environmental problems or pollution (see negative externalities). Examples include textile production, car manufacturing, and handicraft.[1]

Manufacturing is an important activity in promoting economic growth and development. Nations that export manufactured products tend to generate higher marginal GDP growth, which supports 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 source 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.[2]

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

20 largest Countries by Industrial Output (in PPP terms) according to the IMF and CIA World Factbook, at peak level as of 2020[citation needed]
Economy
Countries by Industrial Output (in PPP terms) at peak level as of 2020 (billions in USD)
(01)  China
11,261
(—)  European Union
5,729
(02)  United States
4,093
(03)  India
2,604
(04)  Japan
1,719
(05)  Indonesia
1,549
(06)  Russia
1,422
(07)  Germany
1,364
(08)  South Korea
912
(09)  Saudi Arabia
840
(10)  Mexico
835
(11)  Turkey
763
(12)  Brazil
720
(13)  United Kingdom
639
(14)  France
597
(15)  Italy
587
(16)  Iran
578
(17)  Canada
537
(18)  Poland
517
(19)  Thailand
499
(20)  Egypt
490

The twenty largest countries by industrial output (in PPP terms) at peak level as of 2020, according to the IMF and CIA World Factbook.[citation needed]

References edit

  1. ^ . Archived from the original on 2020-08-05. Retrieved 2020-07-14.
  2. ^ "Secondary Industry: Meaning, Types, Characteristics, and Examples".

secondary, sector, economy, macroeconomics, secondary, sector, economy, economic, sector, three, sector, theory, that, describes, role, manufacturing, encompasses, industries, that, produce, finished, usable, product, involved, construction, this, article, nee. In macroeconomics the secondary sector of the 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 article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Secondary sector of the economy news newspapers books scholar JSTOR January 2009 Learn how and when to remove this template message This sector generally takes the output of the primary sector i e raw materials like metals wood and creates finished goods suitable for sale to domestic businesses or consumers and for export via distribution through the tertiary sector Many 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 and waste heat that may cause environmental problems or pollution see negative externalities Examples include textile production car manufacturing and handicraft 1 Manufacturing is an important activity in promoting economic growth and development Nations that export manufactured products tend to generate higher marginal GDP growth which supports 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 source 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 2 The secondary sector depends on the primary sector for the raw materials necessary for production Countries that primarily produce agricultural and other raw materials i e primary sector tend to grow slowly and remain either under developed or developing economies The value added through the transformation of raw materials into finished goods reliably generates greater profitability which underlies the faster growth of developed economies 20 largest Countries by Industrial Output in PPP terms according to the IMF and CIA World Factbook at peak level as of 2020 citation needed Economy Countries by Industrial Output in PPP terms at peak level as of 2020 billions in USD 01 China 11 261 European Union 5 729 02 United States 4 093 03 India 2 604 04 Japan 1 719 05 Indonesia 1 549 06 Russia 1 422 07 Germany 1 364 08 South Korea 912 09 Saudi Arabia 840 10 Mexico 835 11 Turkey 763 12 Brazil 720 13 United Kingdom 639 14 France 597 15 Italy 587 16 Iran 578 17 Canada 537 18 Poland 517 19 Thailand 499 20 Egypt 490The twenty largest countries by industrial output in PPP terms at peak level as of 2020 according to the IMF and CIA World Factbook citation needed References edit What is secondary sector Definition and meaning BusinessDictionary com Archived from the original on 2020 08 05 Retrieved 2020 07 14 Secondary Industry Meaning Types Characteristics and Examples nbsp This industry related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Secondary sector of the economy amp oldid 1195870195, wikipedia, wiki, book, books, library,

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