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Sectors Economy

8 Types of Economic Sector

 , March 01, 2019
An economic sector is a level of value creation in an economy. A sector is far larger than an industry and serves as a means for classifying industries. The following are the basic types of economic sector.

Primary

The production of raw materials. For example, the industries mining, agriculture, fishing and forestry are components of the primary sector of the economy.

Secondary

The production of tangible goods from raw materials. This includes any type of product production including manufacturing and craft.

Tertiary

The creation of intangible value. This includes a broad range of industries that mostly produce services such as the transportation, healthcare, finance, information technology, education, travel, hospitality, consulting, professional services, media and entertainment industries. In an advanced economy, the vast majority of production and employment is in the tertiary sector. It is characteristic of developing nations to have a high percentage of employment in the primary and secondary sectors.

Quaternary Sector

Some economists propose that the knowledge economy be separated out from other elements of the tertiary sector into a forth sector, or quaternary sector. This creates a distinction between services that are knowledge-intensive such as information technology and those that are knowledge-light such as the restaurant industry.

Quinary Sector

A theoretical sector that includes decision makers, strategy planners and other individuals who control and direct large scale resources. This is a questionable idea as every sector of the economy involves decision making and strategy. The theory is that executives and other high level decision makers such as politicians add extreme value beyond that created by the knowledge economy with their magical insight and creativity.

Public Sector

In some cases, sectors are defined by ownership into the public, private and voluntary sectors. The public sector includes any value created by a government such as public education.

Private Sector

Value created by a privately owned business or organization such as an airline that is owned by shareholders or a restaurant owned by a family.

Voluntary Sector

Value created voluntarily without an ownership structure such as the value created by housework or caring for children and the elderly in the home.
Overview: Economic Sector
Type
Definition
A level of value creation in an economy.
Related Concepts

Industries

This is the complete list of articles we have written about industries.
Advertising
Advertising Industry
Agriculture Industry
Art Business
Communications
Construction
Consulting
Creative Economy
Creative Industries
Education
Entertainment
Farming
Fashion
Film Industry
Finance
Financial Industry
Food Industry
Green Industry
Heavy Industry
Hospitality
Information Industry
Infrastructure
IT Industry
Light Industry
Manufacturing
Materials
Media
Media Services
Music
Primary Industry
Professional Services
Publishing
Restaurants
Retail
Robotics
Secondary Industry
Service Industry
Software
Space
Space
Sports Industry
Technology Industry
Telecom
Tertiary Sector
Transport Industry
Travel Industry
Video Game Industry
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Financial Sector

The definition of the financial sector with examples.

Industries

A list of industries.

Materials

A list of common types of materials.

Heavy Industry

The definition of heavy industry with examples.

Light Industry

The definition of light industry with examples.

Primary Industry

The definition of primary industry with examples.

Fashion Industry

The definition of fashion industry with examples.

Manufacturing Industry

An overview of the manufacturing industry with examples.

Secondary Industry

The definition of secondary industry with examples.

Economics

Everyday examples of economics.

Labor Economics

An overview of labor economics with examples.

Industrialization

The definition of industrialization with examples.

Consumerism

The definition of consumerism with examples.

Middle Class

The definition of middle class with examples.

Economic Activity

The definition of economic activity with examples.

Bourgeoisie

The definition of bourgeoisie with examples.

Tax

An overview of the common types of taxes.
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