You are here:

Economics/Relationship Between Components of GDP & Sectors of GDP


What is the relationship between sectors of GDP (Agro, Industry, and Service) & components of GDP (Consumption, Biz Inv, Gov't Spend, Net Exports)?

Is there a correlation at all? For example:  A Biz Investment (component) could relate to 2 possible GDP sectors (Industry or Service) depending on what they purchase?

Is this thought process correct or are these two topics very seperate from each other?

All the types of cash flows in the national economy impact all the different economic sectors.  All types of businesses consume, invest, export, receiving government injections, pay taxes, hire people, etc.  The economic sectors (primary, secondary, tertiary), as well as the sectors of national income (businesses, households, government, financial, foreign) are just ways of dividing up the economy, while sources and recipients of cash flows result from the daily operations of everyone in the economy, regardless of how you divide it up.


All Answers

Answers by Expert:

Ask Experts


Michael Taillard


Accepts most economic questions


Consulting with major corporations, government agencies, political organizations, small businesses, non-profits, start-ups, and even individual people. Teaching at universities around the world, and developing original coursework. Performing original research and analysis. Writing books and scientific studies.

American Economics Association

Publications You can also check Proquest for a small selection of my research.

PhD (Financial Economics; honors) -- MBA (International Business Finance; honors) -- Grad School Certificate (International Business Management; honors) -- BS (International Business Economics; honors) -- AA (Business Administration; honors) -- Certificate (Chinese Language and Culture) -- Trade School (Transportation Logistics; honors)

©2017 All rights reserved.