Secondary sector of the economy
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Economic sectors |
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Three-sector model |
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Additional sectors |
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Theorists |
Sectors by ownership |
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
The secondary sector depends on the primary sector for the raw materials necessary for production. Countries that primarily produce
Economy | Countries by Industrial Output (in PPP terms) at peak level as of 2020 (billions in USD)
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(01) China | 11,261
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(—) European Union | 5,729
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(02) United States | 4,093
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(03) India | 2,604
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(04) Japan | 1,719
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(05) Indonesia | 1,549
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(06) Russia | 1,422
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(07) Germany | 1,364
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(08) South Korea | 912
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(09) Saudi Arabia | 840
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(10) Mexico | 835
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(11) Turkey | 763
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(12) Brazil | 720
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(13) United Kingdom | 639
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(14) France | 597
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(15) Italy | 587
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(16) Iran | 578
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(17) Canada | 537
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(18) Poland | 517
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(19) Thailand | 499
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(20) Egypt | 490
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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
- ^ "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".