<p>The division of the economy into sectors is arbitrary, meaning there is no universally accepted division of the economy. It is contextually dependent. </p>

CC BY-SA 4.0
2019-02-16T01:53:05.123Z
2019-02-16T01:53:05.123Z
cole996
<p>I am of the understanding that an Economy is broken down as follows:</p>

<ul>
<li>Traditional;</li>
<li>Command;</li>
<li>Market;</li>
<li>Mixed.</li>
</ul>

<p>Each Economy being made up of Sectors, which in turn, are made up of Industries.</p>

<p>Simply put, what defines a Sector?  I understand that it is the broad categorisation of its associated Industries but is there some kind of universal criteria that need to be met for a term to be viewed as a Sector?  </p>

<p>I say criteria, as I come across many interpretations of what a Sector is.  For example, some sources state that a Sector is made up as follows:</p>

<ol>
<li>Primary;</li>
<li>Secondary;</li>
<li>Tertiary;</li>
<li>Quaternary;</li>
<li>Quinary.</li>
</ol>

<p>Other sources then approach sectors from a sense of ownership as follows:</p>

<ol>
<li>Public/State Sector;</li>
<li>Private Sector;</li>
<li>Voluntary Sector.</li>
</ol>

<p>Then there are the other sources who look at Sectors from the view of a Broad Categorisation of Products/Services.  For example:</p>

<ol>
<li>Financial;</li>
<li>Healthcare;</li>
<li>Hospitality.</li>
</ol>

<p>As well as terms seemingly being used interchangeably, it also appears that some sources see Sectors as Industries and vice versa.</p>

<p>Any clarity, on the differentiation, would be greatly appreciated. </p>

CC BY-SA 4.0
2019-02-16T09:42:12.880Z
Your example of  *Financial/Healthcare/Hospitality* sectors would often be seen as parts of the *[Tertiary](https://en.wikipedia.org/wiki/Tertiary_sector_of_the_economy)* or *Service sector*.  Your *Public/Private/Voluntary* split is more about ownership.  But the key point is that *[sector](https://en.wikipedia.org/wiki/Economic_sector)* is being used as a kind of *part*, and that just depends on how you cut up the economy
Henry
<industrial-organisation>
What is an Economic Sector?
Craig
# What is an Economic Sector?

(Asked by: username_0 on 2019-02-15)

I am of the understanding that an Economy is broken down as follows:

* Traditional;
* Command;
* Market;
* Mixed.

Each Economy being made up of Sectors, which in turn, are made up of Industries.

Simply put, what defines a Sector? I understand that it is the broad categorisation of its associated Industries but is there some kind of universal criteria that need to be met for a term to be viewed as a Sector?

I say criteria, as I come across many interpretations of what a Sector is. For example, some sources state that a Sector is made up as follows:

1. Primary;
2. Secondary;
3. Tertiary;
4. Quaternary;
5. Quinary.

Other sources then approach sectors from a sense of ownership as follows:

1. Public/State Sector;
2. Private Sector;
3. Voluntary Sector.

Then there are the other sources who look at Sectors from the view of a Broad Categorisation of Products/Services. For example:

1. Financial;
2. Healthcare;
3. Hospitality.

As well as terms seemingly being used interchangeably, it also appears that some sources see Sectors as Industries and vice versa.

Any clarity, on the differentiation, would be greatly appreciated.

**Tags:** industrial-organisation
> **Comments:**
> **username_1**: Your example of  *Financial/Healthcare/Hospitality* sectors would often be seen as parts of the *[Tertiary](https://en.wikipedia.org/wiki/Tertiary_sector_of_the_economy)* or *Service sector*.  Your *Public/Private/Voluntary* split is more about ownership.  But the key point is that *[sector](https://en.wikipedia.org/wiki/Economic_sector)* is being used as a kind of *part*, and that just depends on how you cut up the economy  

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## 1 answers

### Answer by username_2 on 2019-02-16. Score: 1

The division of the economy into sectors is arbitrary, meaning there is no universally accepted division of the economy. It is contextually dependent.


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