Market Sectors (sometimes sectors of the economy or economic sectors) is a term used for the basic division of activities taking place in the economy of each country to the basic groups (sectors). The basic division of market sectors is three-sectoral. It is sometimes divided to four sectors (separately is earmarked science and research that is otherwise included in the tertiary sector). Market sectors are distinguished by the kind of economic activity and they are as follows:
- Raw materials (primary sector) - sector includes all branches of human activity that transform natural resources into basic products
- Manufacturing and Industry (secondary sector) - sector includes all branches of human activity that transform raw materials into products or goods
- Service sector (tertiary sector) - sector includes all branches of human activity whose essence is to provide services
- Science and Research (quaternary sector) - sector includes all branches of human activity whose essence is the development, science and research
Market sectors are further divided into branches.
Market sector in practice: basic structure of market sectors is used for gross definition of the performance of individual economies and for the expression of their GDP. Market sectors (sectors of the economy) are used to describe the differences between developing and developed economies. As a general rule, the more advanced economy, the smaller share of primary sector and more share of tertiary or quaternary sector, and vice versa. For a more detailed breakdown into individual branches and into individual economic activities, there are used different classifications of human activities.
Distribution of GDP into individual market sectors (in the three-sectoral concept) in particular countries is shown on the picture below. There are shown countries with a high share of tertiary sector in GDP (blue shades), countries with a high share of industry (red and purple), and countries with a high share of agriculture (green shades). The lower image is by same color divided labor force by profession, i.e. division by the number of people in particular sectors of the economy (Source Wikipedia).
GDP and Labour Force by Sector; source Wikipedia