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Place industry in the national economy

Depending on the characteristics that underlie the formation of the industry — on the purpose of the product and the level of social need for it, the nature of the raw materials used, the technology used, the place of the industry in the national economy is determined, which is assessed by a combination of a number of factors:

• share of gross domestic product produced,

• share of national income generated,

• share of net income generated,

• the share of the industry in the total volume of production of marketable products,

• the proportion of production elements in the industry (the value of fixed assets, headcount, etc.).

• impact on the development of other industries,

• impact on scientific and technological progress,

• impact on socio-economic processes in society.

Any industry, as a rule, is closely connected with other sectors of the national economy. For example, industry enterprises may:

• use products of the extractive industries and the fuel and energy complex as raw materials;

• order the construction of facilities, transportation of goods for various modes of transport, scientific research;

• be clients of communications and other service industries;

• supply raw materials for deeper processing and final products for use in other industries;

• act as management entities for state and municipal authorities.

The leading role of industry in the system of the national economic complex and the entire national economy is well-known and obvious.

It is industry that technically equips and re-equips the entire national economy, generates and supplies advanced industrial technologies to other industries, it produces more than half of production and national income.
The share of industry in the GDP structure of the Russian Federation in 2004 amounted to 28.2% (Table 2, Fig. 2).

Table 2 -

ratio of sectors of the national economy by specific weight in Russia's GDP


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Place industry in the national economy

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