Productive forces have a tendency to develop, which determines the further division of labor and the formation of branches of the national economy and their groups. In the context of studying national economic processes, it is important to answer the question: "What is the industry?"
National Economy
The multi-structured economy of the national economy is explained by the presence of a large number of different production processes and methods of appropriating the goods produced.
The whole system of subsystems and links of the national economy is reflected in its structure. Its change may be caused by the introduction of scientific and technological progress in production processes, socio-economic changes in society and other global processes. New industries and sub-sectors are appearing against the background of the disappearance of old ones, and the assortment of products is changing. The industry is the average level of functioning of the macroeconomic category of the national economy. And its study will allow a clearer understanding of the complex processes taking place in the global economy.
The structure of the national economic complex
The structure of the national economy can be divided according to the following criteria:
- To industry (industry is a separate direction in the economy): agriculture , industry, transport, etc.
- Functional (according to the functions performed): fuel and energy, construction, engineering and other complexes.
- Regional (according to the territorial location within a particular state).
What is an industry?
The study of the economic structure of the country is inextricably linked with the concept under consideration. Thus, all metal producers comprise the metallurgical industry, all agrarians - the agricultural industry, etc. Thus, the industry is a combination of producers of one good selling it on the same market (in the global sense).
In practice, many manufacturers simultaneously produce several types of products, so the following definition will be more correct. An industry is a combination of subjects of economic relations, producers of goods of a certain kind, conducting their activities with the help of one type of equipment. Products may be sold in different markets. For ease of economic analysis, it is generally accepted that each individual producer produces one good, selling it on the same market.
How to determine the consumer of a particular product? A synonym for the word "industry" is a branch, a direction, therefore, the target audience will consume its goods. If you produce consumer goods, the country's population will buy it. The product in the form of an intermediate good is interesting for representatives of other areas of the economy. Thus, animal-skin-processing enterprises sell fully processed semi-finished leather to, say, shoe factories. An important point in the functioning of a market economy is the balance of supply and demand in various industry markets.
Structure
The industry is an important economic concept, therefore, the study of its structure, which means the composition, ratio and interconnections of individual industries, is very important for understanding the essence of national economic processes.
The structure of a large industry is influenced by many factors, the most significant of which are:
- implementation of scientific and technological progress;
- growth of cultural level and well-being of the population;
- cooperation, concentration and specialization of production processes;
- planned growth indicators of the industry and all its sub-sectors;
- international processes of division of labor;
- socio-political factors of the world;
- government position in world markets.
The sectoral structure is the most progressive if, in its functioning, the achievements of scientific and technological progress are ensured, and effective methods and forms of production organization and the use of labor and material resources are introduced.
Grouping
The concept of the industry is closely related to the processes of grouping and generalization. Various areas of the economy are grouped according to certain criteria, which may be the properties of the resource / product or the similarity of the technological process. A group of industries is often called industry.
Everyone involved in baking (rolls, bread, bagels, etc.) should be grouped into the bakery industry. Manufacturers of sweets (ice cream, sweets, cakes) should be combined into a candy store. All "milkmen" (producers of milk, cottage cheese, sour cream) - in the dairy industry. Plant growers who are engaged in the cultivation of fruit trees (pears, plums, apple trees) - in the horticultural.
For the purpose of more generalized economic processes, it is possible to combine all of the listed producers on the basis of food production in the food industry. It is by this principle that the grouping of industries in the modern economy takes place.
Sectors of the economy
Acting in this way, you can get several large combined economic areas. Understanding what the industry is in the economy will help to consider such enlarged entities. So, each of these sectors is formed on the basis of a common nature of production. To date, the following main sectors of the economy are distinguished:
- Agriculture, forestry, hunting and fishing.
- Mining industry.
- Manufacturing industry.
- Construction.
- Electricity, water and gas.
- Trade: wholesale and retail.
- Transport and logistic.
- The medicine.
- Education.
- Hotels and restaurants.
- Finance.
- Public service.
It is economically feasible to combine these sectors into larger areas:
- The sector of material production - from agriculture to construction.
- The segment of services (intangible relations) - from trade to public service.
The combination of these two global sectors will cover absolutely all production and economic processes taking place in the state.
Classification of industries by OKONH
The diversity of activities of enterprises of the national economy creates the need for their classification and ordering. The All-Russian classifier “Branches of the national economy” is a way of grouping types of activities in areas taking into account the nature of their functions and structural features. This classification was abolished in 2003, however, it is advisable to start studying the industry structure from it. Types of sectors of the economy, according to the OKONH grouping, were divided into two groups. Their composition is presented in the table.
Industries |
10,000 | Industry |
20000 | Agriculture |
30000 | Forestry |
50,000 | Transport and communication |
60,000 | Construction |
70,000 | Trade and catering |
80,000 | Logistics and Sales |
81000 | Blanks |
82000 | Computer Services |
83000 | Real estate operations |
84000 | General business activities to ensure market functioning |
85000 | Geology and exploration of mineral resources, geodetic service |
87000 | Other activities of the sphere of material production |
Non-manufacturing sectors |
90,000 | Department of Housing and Utilities |
90300 | Non-productive consumer services |
91000 | Health, physical education and social security |
92000 | Public education |
93000 | Culture and art |
95000 | Science and Science |
96000 | Finance, credit, insurance and pensions |
97000 | Control |
98000 | Public associations |
Classification by OKVED
Today, in Russia, the classification of sectors of the national economy occurs by type of economic activity (NACE), which involves the division into the following groups:
OKVED code grouping by sections |
Section A | Agriculture, hunting and forestry |
Section B | Fishery, fish farming |
Section C | Mining |
Section D | Manufacturing |
Section E | Production and distribution of electricity, gas and water |
Section F | Construction |
Section G | Trade in motor vehicles and motorcycles, their maintenance and repair. Wholesale |
Section H | Wholesale Trade (continued) |
Section I | Retail. Repair of household goods and personal items |
Section J | Transport and communication |
Section K | Financial activities |
Section L | Real estate operations, rental and provision of services |
Section M | Public administration and military security; compulsory social security |
Section N | Education |
Section O | Health and social services |
Section P | The provision of other utility, social and personal services |
Section Q | Housekeeping |
Section R | Activities of extraterritorial organizations |
Employment structure
Any of the branches of the economy, their groups or sectors of the economy is characterized by the number of workers involved in the industry (works in the extractive industry, for example, carry out 5% of the total labor force of the economy). The ratio of employment in different sectors of the economy is called the structure of employment and depends on the productivity of workers and demand for various goods.
So how is the redistribution of this system in national economies? The employment structure is inextricably linked with changes in the national economy. It reflects the economic, social, demographic and other features of the functioning of society.
The structure of employment includes several components:
1. Public-private:
- employed in the public sector of the economy;
- employed in the private sector.
2. Social - is a reflection of the class structure of society, the ratio of the population with different living standards.
3. Industry - reflects the degree of development of sectors of the national economy.
4. Regional - affects the following indicators of regional economies:
- degree of use of labor resources;
- level of development of natural resources of the territory;
- level of economic activity;
- share of employed population.
5. Vocational qualification - provides information on the quantity and professionalism of the labor resources of the region.
6. Sex and age.
7. Family - characterized by the following symptoms:
- displays the general economic condition of the country;
- demographic indicators, namely mortality and fertility, directly depend on the level of family income;
- economic reform should take place in order to increase the economic level of busy families.
8. National - analyzes the composition of labor resources on a national basis.
All links are closely interconnected in the national economy and cannot exist separately.