Business – 1.2 Business structure – Economic sectors | e-Consult
1.2 Business structure – Economic sectors (1 questions)
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Technological change acts as a catalyst that reshapes sectoral contributions to GDP in the following ways:
- Primary sector: Advanced machinery, precision farming, and biotechnology increase output with fewer workers, reducing the sector’s share of GDP despite higher productivity.
- Secondary sector: Automation, robotics and additive manufacturing streamline production, allowing higher value‑added output but often with a smaller labour force, which can either maintain or slightly reduce its GDP share depending on the pace of innovation.
- Tertiary sector: Digital platforms, cloud computing and AI expand service delivery, creating new sub‑sectors (e.g., fintech, e‑commerce) and boosting the sector’s contribution to GDP.
The net effect is a typical shift from a primary‑dominant economy to one where services dominate GDP composition, with manufacturing occupying a transitional role. Countries that successfully adopt new technologies tend to see a higher proportion of GDP coming from high‑value services, while the relative weight of agriculture and traditional manufacturing declines.