The government sector is one of four economic sectors in addition to the household sector, the business sector, and the external sector. Unlike business, the government sector is not profit-oriented but rather
Economic Sector
External Sector: Its Effect on the Economy
What's it: The external sector refers to economic actors located outside the country. They include foreign households, foreign businesses, and foreign governments. They interact with the domestic economy through international trade.
Household Sector: Definition and Role in the Economy
What's it: The household sector includes individuals or groups of individuals. A household may consist of one or several people who live in the same household and share food. They may include one family or another group of
Four Business Organizations in the Private Sector You Need to Know
The four business organizations in the private sector are sole proprietorships, partnerships, private limited companies, and public limited companies. They also have different advantages and disadvantages. Businesses in the private
What are the Factors Causing Deindustrialization
Factors causing deindustrialization occurred due to higher manufacturing productivity, pushing prices and job absorption to continue to fall. The change in the economic structure from a manufacturing-based to a service-based basis has
What Are The Impacts of Deindustrialization?
Deindustrialization brings both positive and negative impacts. First, it could reflect an increase in living standards, so consumers spend more dollars on services. Then, the reduced reduction in environmental degradation is an example of
What is the Difference Between Private Sector and Public Sector
Ownership and motives in providing goods and services are the main differences between the private sectors and public sector. Yet, both play a vital role under mixed economies, the economic systems most countries adopt today. What is a
4 Types of Business Sector You Need to Know
The business sector is divided into four types: primary, secondary, tertiary, and quaternary. Each consists of many businesses, ranging from small businesses to large businesses. And, in each sector, we can see the many industries in which
What Are the Positive and Negative Effects of Industrialization?
Industrialization brings both positive and negative effects. During industrialization, the manufacturing sector enjoyed a rapid increase in output. It also creates more jobs and income in the economy as it increases the value-added of
Macroeconomic Sector: Types, Roles
What's it: Macroeconomic sector is an aggregate group representing economic actors. Economists divide it into four groups: household, business, government, and external sectors. Each represents the actors in the economy. The
Government Sector: Meaning, Budget, and Impact on the Economy
What's it: Government sector includes all institutional units consisting of the central government, state governments, and local governments. Several independent institutions, such as the Central Bank and the Financial Services
Industry: Meaning, Classification
An industry is an economic activity related to processing raw materials and manufacturing goods in factories. This definition is synonymous with manufacturing. The term "industry" also means a group of different companies offering
Dutch Disease: Meaning, Examples, Causes and Possible Solutions
What's is: Dutch Disease is a term that describes an economic phenomenon when the exploitation of natural resources triggers weakness in other sectors, especially manufacturing. An increase in income from the exploitation of natural
Privatization
Privatization is the transfer of ownership from the public sector to the private sector. The government sells state-owned companies to private buyers. It is common during the economic transition from socialism to free markets. The
Public Sector: Definition, Role, Pros, and Cons
What's it: The public sector is the economic sector controlled by the state and includes the central government, local governments, and organizations under them. This sector has an essential role in the economy because it has the
Deindustrialization: Definition, Causes, and Effects
Indonesia is facing deindustrialization. We see the contribution of its manufacturing output to gross domestic product continues to fall, from 28% in 2008 to only 17% in 2019. The chart above shows you how severe the decline is. The