World Library  
Flag as Inappropriate
Email this Article

Primary sector of the economy

Article Id: WHEBN0000014552
Reproduction Date:

Title: Primary sector of the economy  
Author: World Heritage Encyclopedia
Language: English
Subject: Economy, Economic sector, Aarau, Economics of primary sector industries, AgQuip
Collection: Agricultural Economics, Economics of Primary Sector Industries, Industry, National Accounts, Resource Economics
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Primary sector of the economy

Product’s lifecycle

The primary sector of the economy is the sector of an economy making direct use of natural resources. This includes agriculture, forestry, fishing and mining. This is contrasted with the secondary sector, producing manufactured goods, and the tertiary sector, producing services. The primary sector is usually most important in less developed countries, and typically less important in industrial countries.

The manufacturing industries that aggregate, pack, package, purify or process the raw materials close to the primary producers are normally considered part of this sector, especially if the raw material is unsuitable for sale or difficult to transport long distances.[1]

Primary industry is a larger sector in developing countries; for instance, animal husbandry is more common in Africa than in Japan.[2] Mining in 19th century South Wales is a case study of how an economy can come to rely on one form of business.[3]

Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. However, in recent years, the number of terminal exchanges have heavily reduced Canada's primary industry, making them rely more on quaternary industry.

Contents

  • Agriculture 1
  • List of countries by agricultural output 2
  • See also 3
  • References 4
  • Further reading 5

Agriculture

In developed countries primary industry is becoming more technologically advanced, for instance the mechanization of farming as opposed to hand picking and planting. In more developed economies additional capital is invested in primary means of production. As an example, in the United States corn belt, combine harvesters pick the corn, and spray systems distribute large amounts of insecticides, herbicides and fungicides, producing a higher yield than is possible using less capital-intensive techniques. These technological advances and investment allow the primary sector to require less workforce and, this way, developed countries tend to have a smaller percentage of their workforce involved in primary activities, instead having a higher percentage involved in the secondary and tertiary sectors. [4]

Developed countries are allowed to maintain and develop their primary industries even further due to the excess wealth. For instance, European Union agricultural subsidies provide buffers for the fluctuating inflation rates and prices of agricultural produce. This allows developed countries to be able to export their agricultural products at extraordinarily low prices. This makes them extremely competitive against those of poor or underdeveloped countries that maintain free market policies and low or non-existent tariffs to counter them.[5][6][7] Such differences also come about due to more efficient production in developed economies, given farm machinery, better information available to farmers, and often larger scale.

List of countries by agricultural output

Largest countries by agricultural output according to IMF and CIA World Factbook, 2014
Economy
Countries by agricultural output in 2014 (billions in USD)
(01)  China
1,036
(02)  India
356
(—)  European Union
331
(03)  United States
192
(04)  Nigeria
184
(05)  Brazil
123
(06)  Indonesia
122
(07)  Russia
86
(08)  Turkey
72
(09)  Pakistan
61
(10)  Australia
56
(11)  France
55
(12)  Japan
52
(13)  Argentina
50
(14)  Mexico
47
(15)  Thailand
46
(16)  Spain
43
(17)  Iran
43
(18)  Italy
43
(19)  Egypt
41
(20)  Malaysia
38

The twenty largest countries by agricultural output in 2014, according to the IMF and CIA World Factbook.

See also

References

  1. ^ About.com: Sectors of the Economy
  2. ^ Primary Sector in Economic Development
  3. ^ Mining: it's only a word
  4. ^ H Dwight H. Perkins: Proceedings of the Academy of Political Science, Vol. 31, No. 1, China's Developmental Experience (Mar., 1973)
  5. ^ WTO MINISTERIAL OUTCOME IMBALANCED AGAINST DEVELOPING COUNTRIES
  6. ^ Third World Farmers Hit by Unfair Rules
  7. ^ U.S. subsidies help big business, but crush farmers from renovating countries

Further reading

  • Dwight H. Perkins: Proceedings of the Academy of Political Science, Vol. 31, No. 1, China's Developmental Experience (Mar., 1973)
  • Cameron: General Economic and Social History
  • Historia Económica y Social General, by Maria Inés Barbero, Rubén L. Berenblum, Fernando R. García Molina, Jorge Saborido
  • The Nature of Wealth, by Fred Lundgren and Jerome Friemel
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 



Copyright © World Library Foundation. All rights reserved. eBooks from Hawaii eBook Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.