As David Riccardo proved, each state in the world has various kinds of comparative and absolute advantages over other countries. It is the presence of advantages in certain areas that are the reason that countries specialize in the production of certain products. It is logical that depending on the presence or absence of certain advantages (in fact, depending on the availability of resources), the sectoral structure of the economy is formed. We will talk about how this structure is formed and what it affects, in this article.
The sectoral structure of the economy is the composition and ratio of the main types of economic activity that are carried out domestically. Depending on what types of activity prevail, the internal economic structure of the state is formed, as well as its position in the world market. In fact, the sectoral structure of the economy is the main factor in the formation of the general profile of the state as a participant in the global economy. It is possible to deduce a logical chain of three links: the availability of natural resources - industry structure - position in the world market. Consider how the economic structure of the state affects its position. For example, the sectoral structure of the Russian economy is structured in such a way that mining and heavy industry prevail in it . Naturally, this situation is facilitated by the abundant and logistically advantageous allocation of natural resources - natural gas, oil, diamonds, metal ore deposits and so on. In turn, the structure of the Russian economy determines its position in the world market as an exporter of oil, gas, metals and heavy industry products. In turn, neighboring Ukraine has significant agricultural resources - vast areas of high-quality land, as a result, a significant place in the sectoral structure of the Ukrainian economy is allocated to agriculture and food production. As a result of this, Ukraine is an exporter of food products and an importer of energy resources, while Russia, on the contrary, imports Ukrainian products and exports energy resources.
The sectoral structure of the economy is classified according to two systems: the international classification of branches of economic activity and the classification according to the system of national accounts.
According to the industry classification, the sectoral structure of the economy consists of the following elements:
- Primary sector of the economy - includes such areas of economic activity as the extraction of raw materials (forests, ores, oil and gas), as well as agriculture. In fact, the primary sector includes all types of activities, including the direct interaction of man with nature, during which nature gives up any resources.
- Secondary sector of the economy - includes all enterprises involved in the processing of raw materials and producing finished products. The secondary sector also includes manufacturers of semi-finished products, which subsequently become the "raw material" for the production of the final product.
- The tertiary sector of the economy - is a service sector, or, as it is also called, the sphere of intangible production. This includes counseling, insurance, banking, securities transactions and more.
Classification according to the system of national accounts involves determining the contribution to the creation of GDP of the following sectors of the economy:
- Small business sector.
- The sector of medium and large business.
- State-owned enterprises.
According to scientists, an indicator of a highly developed economy is the predominance of small enterprises in its sectoral structure, working mainly in the service sector. The approach to this standard of the sectoral structure is a sign of the right path of economic development of the state.