Multi-Sector Growth Economies

Abstract

There are many kinds of commodities and services that we use and consume in our daily life: food, housing, clothing, cars, computers, air-conditioners, services from doctors or teachers or retailers, and entertainment by visiting museums or watching the performance of artists and sportsmen. Even in a simple food category, we may list thousands of kinds of food, depending on our likes. In modem times, this list has grown explosively. Evidently, it is impossible to analyze economic issues at national and regional levels without aggregation. In an aggregated sense, there are three types of commodities (and services): some are capital goods like TVs, clothing and machines; some are consumption goods such as vegetables, milk and meat; and the others are services. So far, we have mainly been concentrating on economies with a single commodity. This chapter broadens our analysis to multiple sector economies.