The sectoral structure of the economy - a key factor in the development of the country

As proved by David Ricardo, every country in the world has a different kind of comparative and absolute advantage over other countries.It is the availability of benefits in certain areas are the reason that countries specialize in the production of certain products.Logically, depending on the presence or absence of certain benefits (in fact - depending on the availability of resources) is formed by the branch structure of the economy.About how it is formed and what does this structure, we describe in this article.

Branch structure of the economy - it is the composition and the ratio of the basic kinds of economic activities which are carried out within the country.Depending on which activities predominate, formed by the internal economic structure of the state, as well as its position in the global market.In fact, the sectoral structure of the economy is a major factor in shaping the general state of the world economy as a participant.You can display the logical chain of three units: the presence of natural resources - the branch structure - the position in the global market.Consider the effect of the economic structure of the state at his position.For example, the sectoral structure of the Russian economy is built in such a way that it is dominated by mining and heavy industry.Naturally, this state of affairs contributes to the abundant and logistically advantageous location of natural resources - natural gas, oil, diamonds, deposits of metal ores 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.In turn, located near Ukraine has significant agricultural resources - vast areas of high land, resulting in the sectoral structure of the Ukrainian economy a considerable space is devoted to agriculture and food production.As a result, Ukraine stands exporter of food and energy importer, and Russia, on the contrary, Ukrainian imports and exports of energy products.

economic structure is classified into two systems: the International Classification of branches of economic activity and the classification of the national accounts.

According to industry classification, the sectoral structure of the economy are the following items:

  1. primary sector - includes such areas of business activity, as the extraction of raw materials (wood, ore, oil and gas), as well as agriculture.In fact, the primary sector includes all activities, including direct interaction between man and nature, in which nature gives any resources.
  2. secondary sector of the economy - includes all enterprises engaged in processing raw materials and producing finished products.It also includes the secondary sector and manufacturers of semi-finished products, which later become the "raw material" for the production of the final product.
  3. Tertiary sector of the economy - is the service sector, or as it is called, the sphere of immaterial production.These include counseling services, insurance, banking, securities transactions and other.

classification system natsschetov involves clarification of the contribution to GDP of the following sectors:

  1. small business sector.
  2. sector medium and large businesses.
  3. State-owned enterprises.

According to the scientists, the indicator is the prevalence of a highly developed economy in its sectoral structure of small businesses operating primarily in the service sector.The approach to this standard structure is a sign of the industry to choose the right path of economic development.