Economics – Economic development - Differences in economic development between countries | e-Consult
Economic development - Differences in economic development between countries (1 questions)
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A country might have a larger primary sector than secondary or tertiary due to several factors. Here are three reasons:
- Developing Economy: Many less developed countries rely heavily on agriculture, fishing, and forestry for their economic survival. This is because they often have abundant natural resources and a large population engaged in these activities. For example, many countries in Sub-Saharan Africa have a large agricultural sector as a significant part of their GDP and employment.
- Limited Industrialization: If a country has not undergone significant industrialization, the secondary sector (manufacturing) will be smaller. This could be due to a lack of investment in factories, infrastructure, or skilled labor. For instance, some island nations with limited land and resources may struggle to develop a large manufacturing base.
- Export-Oriented Economy: A country focused on exporting raw materials (e.g., minerals, timber, agricultural products) will prioritize the primary sector. The economic benefits are derived from selling these raw materials to other countries, rather than from domestic manufacturing or services. Countries like Norway (oil) or Canada (timber) exemplify this.