Production forces tend to develop, which determines the further division of labor and the formation of sectors of the national economy and their groups. In the context of studying economic processes, it is important to answer the question: "What is an industry?"
National economy of the country
The multi-structured economy of the national economy is explained by the presence of a large number of different production processes and ways of appropriating the goods produced.
The entire system of subsystems and links of the national economy reflects its structure. Its change can be caused by the introduction of scientific and technological progress into production processes, socio-economic changes in society and other global processes. New industries and sub-sectors appear against the background of the disappearance of old ones, the product range is changing. The industry is the average level of functioning of the macroeconomic category of the national economy. And its study will allow you to more clearly understand the complex processes taking place in the global economy.
The structure of the national economiccomplex
The structure of the national economy can be divided according to the following criteria:
- Branch (industry is a separate direction in the economy): agriculture, industry, transport, etc.
- Functional (according to the functions performed): fuel and energy, construction, machine-building and other complexes.
- Regional (according to the territorial location within a certain state).
What is an industry?
The study of the economic structure of the country is inextricably linked with the concept we are considering. So, all metal producers make up the metallurgical industry, all farmers - the agricultural industry, etc. Thus, the industry is a set of producers of one good selling it on the same market (in the global sense).
In practice, many manufacturers simultaneously produce several types of products, so the following definition would be more correct. An industry is a set of subjects of economic relations, producers of goods of a certain kind, conducting their activities with the help of one type of equipment. Sales of products can be carried out in different markets. For ease of economic analysis, it is customary to assume that each individual producer produces one good, selling it on one market.
How to determine the consumer of a certain product? A synonym for the word "branch" is a branch, direction, therefore,the target audience will consume its products. If you produce a consumer good, the population of the country will buy it. The product in the form of an intermediate good is of interest to representatives of other areas of the economy. Thus, animal skin processing companies sell completely processed semi-finished leather to, say, shoe factories. An important aspect of the functioning of a market economy is to maintain the balance of supply and demand in various industry markets.
Structure
An industry is an important economic concept, so the study of its structure, which means the composition, ratio and relationships of individual industries, is very important for understanding the essence of national economic processes.
The structure of a large industry is influenced by many factors, the most significant of which are:
- implementation of the achievements of scientific and technological progress;
- growth of the cultural level and welfare of the population;
- cooperation, concentration and specialization of production processes;
- planned indicators for the growth of the industry and all its sub-sectors;
- international division of labor processes;
- socio-political factors of the world;
- position of the state in world markets.
An industry structure is the most progressive if its functioning ensures the use of the achievements of scientific and technological progress, as well as the introduction of effective methods andforms of production organization and the use of labor and material resources.
Grouping
The concept of an industry is closely related to the processes of grouping and generalization. Various areas of the economy are combined into groups according to certain characteristics, which can be the properties of a resource / product or the similarity of a technological process. A group of industries is often referred to as an industry.
Everything involved in baking (buns, bread, bagels, etc.) should be grouped into the bakery industry. Producers of sweets (ice cream, sweets, cakes) should be combined into a confectionery. All "milk producers" (producers of milk, cottage cheese, sour cream) - in the dairy industry. Growers who grow fruit trees (pears, plums, apple trees) go to the horticultural shop.
For the purpose of greater generalization of economic processes, it is possible to unite all the listed producers on the basis of food production in the food industry. This is the principle by which industries are grouped in the modern economy.
Sectors of the national economy
Acting in this way, several large unified economic directions can be obtained. To understand what an industry is in the economy, consideration of such enlarged formations will help. Thus, each of these sectors is formed on the basis of the common nature of production. To date, the following main sectors of the economy are distinguished:
- Agriculture, forestry,hunting and fishing.
- Extractive industry.
- Manufacturing industry.
- Construction.
- Electricity, water and gas.
- Trade: wholesale and retail.
- Transport and logistics.
- Medicine.
- Education.
- Hotels and restaurants.
- Finance.
- Public service.
It makes economic sense to combine these sectors into larger areas:
- The sector of material production - from agriculture to construction.
- Segment of services (non-material relations) - from trade to civil service.
Combining these two global sectors will cover absolutely all production and economic processes taking place in the state.
Classification of industries by OKONH
The variety of activities of national economy enterprises necessitates their classification and ordering. The all-Russian classifier "Industries of the national economy" is a way of grouping activities into areas, taking into account the nature of their functions and structural features. This classification was abolished in 2003, but it is advisable to start studying the sectoral structure with it. The types of sectors of the national economy, according to the grouping according to OKONKh, were divided into two groups. Their composition is presented in the table.
| Production sectors | |
| 10000 | Industry |
| 20000 | Agriculture |
| 30000 | Forestry |
| 50000 | Transport and communications |
| 60000 | Construction |
| 70000 | Trade and catering |
| 80000 | Procurement & Sales |
| 81000 | Blanks |
| 82000 | Information and Computing Services |
| 83000 | Real estate transactions |
| 84000 | Common commercial activities to ensure the functioning of the market |
| 85000 | Geology and exploration of subsoil, geodetic service |
| 87000 | Other activities in the sphere of material production |
| Non-manufacturing industries | |
| 90000 | Housing and communal services |
| 90300 | Non-production types of consumer services for the population |
| 91000 | He alth, Physical Education and Welfare |
| 92000 | Public education |
| 93000 | Culture and Art |
| 95000 | Science and scientific service |
| 96000 | Finance, credit, insurance and pensions |
| 97000 | Management |
| 98000 | Public associations |
Classification according to OKVED
Today, in Russia, the classification of sectors of the national economy is carried out by type of economic activity (OKVED), which involves the division into the following groups:
| Grouping OKVED codes by sections | |
| Section A | Agriculture, hunting and forestry |
| Section B | Fishing, fish farming |
| Section C | Mining |
| Section D | Manufacturing |
| Section E | Production and distribution of electricity, gas and water |
| Section F | Construction |
| Section G | Trade in motor vehicles and motorcycles, their maintenance and repair. Wholesale |
| Section H | Wholesale (continued) |
| Section I | Retail. Repair of household and personal items |
| Section J | Transport and communications |
| Section K | Financial activity |
| Section L | Real estate, rental and service provision |
| Section M | Government and military security; compulsory social security |
| Section N | Education |
| Section O | He alth and social services |
| Section P | Providing other community, social and personal services |
| Section Q | Provision of housekeeping services |
| Section R | Activities of extraterritorial organizations |
Employment structure
Any of the branches of the economy, their groups or sectors of the economy is characterized by the number of workers involved in the industry (works in the mining industry, for example, carry out 5% of the total labor force of the economy). The ratio of employment in different spheres of the national economy is called the employment structure and depends onproductivity of workers and demand for various goods.
So how is this system being redistributed in national economies? The structure of employment is inextricably linked with changes in the national economy. It reflects the economic, social, demographic and other features of the functioning of society.
The structure of employment includes several components:
1. Public-private:
- employed in the public sector of the economy;
- employed in the private sector.
2. Social - is a reflection of the class structure of society, the ratio of the population with different living standards.
3. Sectoral - reflects the degree of development of the branches of the national economy of the state.
4. Regional - affects the following indicators of the regional economy:
- degree of labor utilization;
- level of development of natural resources of the territory;
- economic activity;
- share of employed population.
5. Vocational qualification - provides information about the number and professionalism of the region's labor resources.
6. Gender and age.
7. Family - characterized by the following features:
- displays the general economic condition of the country;
- demographic indicators, namely mortality and birth rate, directly depend on the level of family income;
- reforming the economy should take place in order to increase the economic level of employed families.
8. National - analyzes the composition of the labor force on a national basis.
All links are closely interconnected in the national economy and cannot exist separately.
