The institutional sector includes various sub-sectors that play distinct roles in the economy. These sub-sectors can be broadly categorized into five main institutional sectors, each serving a specific functions.
1. Non-Financial Corporations:
Non-Financial Corporations (NFCs) are entities engaged in the production of goods and services for market transactions. The sub-sectors within NFCs include:
- Manufacturing: This sub-sector encompasses companies that are involved in the production process, manufacturing goods from raw materials or parts. Examples include automobile manufacturers, textile mills, and electronic equipment manufacturers.
- Construction: Companies involved in the construction of infrastructure, buildings, and other structures fall into this sub-sector. It includes general contractors, specialized trade contractors, and architectural firms.
- Utilities: This sub-sector includes businesses responsible for providing essential services such as electricity, gas, water, sewage treatment, and waste management. Utility companies deliver these services to households, industries, and other consumers.
- Mining and Quarrying: Companies involved in the extraction of minerals, oil, and natural gas form this sub-sector. It includes activities such as coal mining, oil drilling, metal ore mining, and quarrying of stone, sand, and gravel.
2. Financial Corporations:
Financial Corporations (FCs) primarily engage in various financial intermediation activities. The sub-sectors within FCs consist of:
- Depository Corporations: This sub-sector comprises commercial banks, savings and loan associations, credit unions, and other financial institutions that accept deposits from individuals and businesses.
- Contractual Savings Institutions: Pension funds, insurance companies, and other institutions involved in managing and investing long-term savings on behalf of individuals or groups fall into this sub-sector.
- Other Financial Intermediaries: These include finance companies, consumer credit institutions, venture capital firms, and other institutions that facilitate borrowing, lending, and investment activities.
- Financial Auxiliaries: This sub-sector consists of supporting institutions such as stock exchanges, clearinghouses, payment and settlement systems, credit rating agencies, and financial consulting firms.
3. General Government:
The General Government sector includes all levels of government, including central, state, and local government entities. It encompasses public administration, legislative bodies, and entities responsible for public services and policy-making. Examples include ministries, departments, municipalities, school districts, and public hospitals.
4. Non-Profit Institutions Serving Households (NPISHs):
Non-Profit Institutions Serving Households are entities that provide non-market services to households without pursuing profit objectives. The sub-sectors within NPISHs include:
- Health: Hospitals, clinics, medical research organizations, and charitable organizations providing healthcare services fall into this sub-sector.
- Education: Schools, universities, research institutions, and other educational organizations form this sub-sector.
- Social Services: Charitable organizations, religious institutions, community centers, and other entities providing social assistance, welfare, and other related services fall into this sub-sector.
- Culture and Recreation: Libraries, museums, art galleries, sports clubs, and other organizations promoting cultural, artistic, and recreational activities form this sub-sector.
5. Rest of World:
The Rest of World sector includes entities residing outside the domestic economy but engage in economic transactions with domestic institutional units. This sector mainly involves foreign corporations, governments, and households involved in cross-border trade, investment, and other economic activities.
These sub-sectors within each institutional sector have distinct roles in the economy, and their activities contribute to overall economic development and growth.
Institutional sector include sub sectors. Describe in details each sub sector for all institutional sectors
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