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Three-sector model
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This article includes a list of general references, but it remains largely unverified because it lacks sufficient corresponding inline citations. (August 2008)
The three-sector model in economics divides economies into three sectors of activity: extraction of raw materials (primary), manufacturing (secondary), and service industries which exist to facilitate the transport, distribution and sale of goods produced in the secondary sector (tertiary).[1] The model was developed by Allan Fisher,[2][3][4] Colin Clark,[5] and Jean Fourastié[6] in the first half of the 20th century, and is a representation of an industrial economy. It has been criticised as inappropriate as a representation of the economy in the 21st century.[7]
Industrial output in 2005
Service output in 2005
According to the three-sector model, the main focus of an economy's activity shifts from the primary, through the secondary and finally to the tertiary sector. Countries with a low per capita income are in an early state of development; the main part of their national income is achieved through production in the primary sector. Countries in a more advanced state of development, with a medium national income, generate their income mostly in the secondary sector. In highly developed countries with a high income, the tertiary sector dominates the total output of the economy.
The rise of the post-industrial economy in which an increasing proportion of economic activity is not directly related to physical goods has led some economists to expand the model by adding a fourth quaternary or fifth quinary sectors, while others have ceased to use the model.
Structural transformation according to Fourastié
Extensions to the three-sector model
Value added, national accounts and the three sector model
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References
Further reading
Last edited 27 days ago by 2A00:1D40:1004:138:B2A:8E62:DB65:B77B
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