According to Three-sector Hypothesis(Macroeconomic theory) there are three types of economic activities which are completely different from each other. These activities are named as sectors and this theory speaks about the Primary(1), Secondary(2), and Tertiary(3) sector. These are :-
Service industry constitute the social and economic development of a region. In the world's economy it has contributed a lot to the global output and employment by becoming the largest and fastest growing sector. Its growth rate is even higher than agriculture and manufacturing sector.
- The extraction of raw materials.
- Manufacturing goods.
- Providing services.
As per this theory the development of country's economy will help in changing the economy of a country from the Primary to Secondary and from Secondary to Tertiary.
Tertiary sector is known as service sector. It provides only service not any kind of goods or product. Various activities included in this sector are retailing, banking and insurance, trade, hotels and restaurant, storage and communicate, real estate and ownership of dwelling, etc.
Service industry constitute the social and economic development of a region. In the world's economy it has contributed a lot to the global output and employment by becoming the largest and fastest growing sector. Its growth rate is even higher than agriculture and manufacturing sector.
Service sector has really such a potential that it can accelerate the growth of an economy by offering various business oppurtunities to the investors, by generating employment opportunities as well as by increasing the per-capita income of the nation. Thus, service sector is considered to be an important part of an economy.
