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In
macroeconomics Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred ...
, the secondary sector of the economy is an
economic sector Image:Economic sectors and income.JPG, 250px, Percentages of a country's economy made up by different sectors. Countries with higher levels of socio-economic development tend to have proportionally less of their economies operating in the primary a ...
in the
three-sector theory The three-sector model in economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (econom ...
that describes the role of
manufacturing Manufacturing is the creation or Production (economics), production of goods with the help of equipment, Work (human activity), labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector ...
. It encompasses industries that
produce Produce is a generalized term for many farm-produced crops, including fruits and vegetables (grains, oats, etc. are also sometimes considered ''produce''). More specifically, the term ''produce'' often implies that the products are wikt:fresh, fr ...
a finished, usable product or are involved in
construction Construction is a general term meaning the and to form , , or ,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Press 2009 and comes from ''constructio'' (from ''com-' ...

construction
. This sector generally takes the output of the
primary sector The primary sector of the economy includes any industry Industry may refer to: Economics * Industry (economics) In macroeconomics, an industry is a branch of an economy that produces a closely related set of raw materials, goods, or se ...
(i.e.
raw material A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished Product (business), products, energy, or intermediate materials that are feedstock for future finis ...
s) and creates
finished goods Finished goods are goods In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economic ...
suitable for sale to domestic
business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trad ...

business
es or
consumer A consumer is a person or a group who intends to order, orders, or uses purchased goods, products, or Service (economics), services primarily for personal, social, family, household and similar needs, not directly related to entrepreneurial or bu ...
s and for
export An export in international trade International trade is the exchange of capital Capital most commonly refers to: * Capital letter Letter case (or just case) is the distinction between the letters that are in larger uppercase ...

export
(via distribution through the
tertiary sector The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sector Image:Economic sectors and income.JPG, 250px, Percentages of a country's economy made up by different sectors. Countries with h ...
). Many of these industries consume large quantities of energy, require
factories A factory, manufacturing plant or a production plant is an industrial Industrial may also refer to: Industry * Industrial archaeology, the study of the history of the industry * Industrial engineering, engineering dealing with the optimization ...

factories
and use machinery; they are often classified as
light Light or visible light is electromagnetic radiation within the portion of the electromagnetic spectrum that is visual perception, perceived by the human eye. Visible light is usually defined as having wavelengths in the range of 400–700 nan ...
or
heavy Heavy may refer to: Measures * Heavy (aeronautics), a term used by pilots and air traffic controllers to refer to aircraft capable of 300,000 lbs or more takeoff weight * Heavy, a characterization of objects with substantial weight In scien ...
based on such quantities. This also produces
waste Waste (or wastes) are unwanted or unusable materials. Waste is any substance which is discarded after primary use, or is worthless, defective and of no use. A by-product A by-product or byproduct is a secondary product derived from a produ ...

waste
materials and
waste heat Waste heat is heat that is produced by a machine, or other process that uses energy, as a byproduct of doing Work (thermodynamics), work. All such processes give off some waste heat as a fundamental result of the laws of thermodynamics. Waste hea ...
that may cause environmental problems or
pollution Pollution is the introduction of contaminant Contamination is the presence of a constituent, impurity, or some other undesirable element that spoils, corrupts, infects, makes unfit, or makes inferior a material, physical body, natural en ...

pollution
(see
negative externalities In economics Economics () is a social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behav ...

negative externalities
). Examples include textile production, car manufacturing, and
handicraft A handicraft, sometimes more precisely expressed as artisanal handicraft or handmade, is any of a wide variety of types of work where useful and decorative objects are made completely by one’s hand or by using only simple, non-automated rela ...

handicraft
. Manufacturing is an important activity in promoting
economic growth Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economics, economy over time. Statisticians conventionally measure such growth as the percent rate of i ...

economic growth
and
development Development or developing may refer to: Arts *Development hell, when a project is stuck in development *Filmmaking#Development, Filmmaking, development phase, including finance and budgeting *Development (music), the process thematic material i ...
. Nations that export manufactured products tend to generate higher marginal
GDP Gross domestic product (GDP) is a monetary In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corner">174x174px Money is any ...
growth, which supports higher
income In microeconomics Microeconomics is a branch of mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a bas ...
s and therefore marginal
tax revenue Tax revenue is the income In microeconomics, income is the Consumption (economics), consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms.Smith's financial dictiona ...
needed to fund such government expenditures as
health care Healthcare is the maintenance or improvement of health Health, according to the , is "a state of complete physical, and social and not merely the absence of and ".. (2006)''Constitution of the World Health Organization''– ''Basic Docume ...

health care
and
infrastructure Infrastructure is the set of fundamental facilities and systems that support the sustainable functionality of households and firms. Serving a country, city, or other area, including the services and facilities necessary for its economy An eco ...

infrastructure
. Among
developed countries A developed country (or industrialized country, high-income country, more economically developed country (MEDC), advanced country) is a sovereign state A sovereign state is a political entity that is represented by one centralized governmen ...
, it is an important source of well-paying jobs for the
middle class The middle class is a class Class or The Class may refer to: Common uses not otherwise categorized * Class (biology), a taxonomic rank * Class (knowledge representation), a collection of individuals or objects * Class (philosophy), an an ...
(e.g., engineering) to facilitate greater
social mobility Social mobility is the movement of individuals, families, households, or other categories of people within or between Social stratification, social strata in a society. It is a change in social status relative to one's current social location ...
for successive generations on the economy. Currently, an estimated 20% of the
labor force The workforce or labour force is the labour economics, labour pooling (resource management), pool either in employment or unemployed.https://www.bls.gov/bls/glossary.htm It is generally used to describe those working for a single types of comp ...

labor force
in the United States is involved in the secondary industry. The secondary sector depends on the primary sector for the raw materials necessary for production. Countries that primarily produce
agricultural Agriculture is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary Image:Family watching television 1958.jpg, Exercise trends, Increases in sedentary behaviors such as watching tele ...

agricultural
and other raw materials (i.e., primary sector) tend to grow slowly and remain either under-developed or
developing economies 450px, Example of Older Classifications by the IMF and the United Nations, UN from 2008 A developing country is a country with a less developed industrial base and a low Human Development Index (HDI) relative to other countries. However, ...
. The value added through the transformation of raw materials into finished goods reliably generates greater
profitability An economic profit is the difference between the revenue a has received from its outputs and the s of its inputs. Unlike an , an economic profit takes into account both a 's and costs, whereas an accounting profit only relates to the explici ...

profitability
, which underlies the faster growth of developed economies.


References

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