Sectoral structure of the economy is the most important factor of the country's development

As David Riccardo has proved, every state in the world has various kinds of comparative and absolute advantages over other countries. It is the availability of advantages in certain spheres that cause countries to 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. About how exactly this structure is formed and what affects this structure, we will tell in this article.

The sectoral structure of the economy is the composition and correlation of the main types of economic activity that are carried out within the country. Depending on what types of activities 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 a general profile of the state as a participant in the world economy. It is possible to derive a logical chain of three links: the availability of natural resources - the sectoral structure - the positions 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 built in such a way that it is dominated by extractive and heavy industry. Naturally, this situation is facilitated by abundant and logically beneficial placement 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, the nearby Ukraine has significant agricultural resources - vast areas of high-quality land, as a result of which the sectoral structure of the Ukrainian economy has a significant place in agriculture and food production. As a result, Ukraine acts as an exporter of food products and an importer of energy resources, while Russia, on the contrary, imports Ukrainian products and exports energy.

The sectoral structure of the economy is classified according to two systems: the international classification of economic activity and classification by the system of national accounts.

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

1. The 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 away any resources.
2. Secondary sector of the economy - includes all enterprises involved in the processing of raw materials and produce finished products. The secondary sector also includes producers of semi-finished products, which subsequently become a "raw material" for the production of the final product.
3. The tertiary sector of the economy is a sphere of services, or, as it is also called, the sphere of intangible production. This includes consulting, insurance, banking services, securities transactions, and so on.

Classification by the system of national accounts involves figuring out the contribution to the GDP of the following sectors of the economy:

1. Small business sector.
2. Sector of medium and large business.
3. State-owned enterprises.

According to the scientists, the indicator of a highly developed economy is the predominance in its sectoral structure of small enterprises operating primarily in the service sector. Approach to this standard of the sectoral structure serves as a sign of the correctly chosen path of economic development of the state.