In this article we will discuss Definition of Economic Structure. So, let’s get started.
An economic system or economic order, is a system of production resources allocation and distribution of goods and services within a society or a given geographic area.
Economic structure is a term that describes the changing balance of output, trade, incomes and employment drawn from different economic sectors – ranging from primary (farming, fishing, mining etc) to secondary (manufacturing and construction industries) to tertiary and quaternary sectors (tourism, banking, software industries). Changes in economic structure are a natural feature of economic life but they bring challenges in terms of reallocating factors of production. For example, a shift in production and jobs in one sector can lead to problems of structural unemployment. Our charts below track production in manufacturing, services and in agriculture for the UK economy.
Economic structure is a term that describes
the changing balance of output, trade,
incomes and employment drawn from
different economic sectors – ranging from
primary (farming, fishing, mining etc) to
secondary (manufacturing and construction industries) to tertiary and quaternary sectors (tourism, banking, software.
Importance of Economic Structure
Economic structures determine the rate of structural learning, affect institutional performance, influence the distribution of income and establish the direction of political transitions, thereby economic performance.
Economic growth is important because it is the means by which we can improve the quality of our standard of living. It also enables us to cater for any increases in our population without having to lower our standard of living.
