Analyzing the Service Economy: Tertiarization and Regional Trends

The Tertiary Sector: Definition and Heterogeneity

The tertiary sector is defined relative to the primary and secondary sectors of economic activity. This sector often serves as a catch-all category, encompassing all activities that do not directly produce tangible goods and do not fit into the other two sectors. These activities are commonly known as services.

It is necessary to stress the inherent heterogeneity of the tertiary sector; some authors even speak of quaternary or advanced decision-making services. Under the designation of services are grouped: trade, hotels, transport and communications, and finance.

Classification of Services

Within this wide variety of services, the following categories can be distinguished:

• Distribution Services: These services ensure that products reach the consumers who utilize them.
• Business and Banking Services: These services primarily cater to companies, facilitating their operation by providing credit, insurance contracts, and other essential support.
• Public Administration and Social Services: These include all activities funded by the state designed to regulate the functioning of society and improve the quality of life for the population.
• Personal Services: These services meet the demands of the population in varied areas such as hospitality, tourism, and entertainment.

Tertiarization of the Economy

The process of tertiarization (the growth of the service economy) has been evident since the mid-seventies. The tertiary sector is dominant in terms of both employment and production: service activities employ approximately eight million people and contribute almost two-thirds of the Gross Domestic Product (GDP).

Factors Influencing Service Sector Expansion

The expansion and diversification of services in our country have been influenced by several factors:

• Increasing Standard of Living: The rise in the population's standard of living, coupled with changes in lifestyle, consumption habits, and leisure activities.
• Development of the Welfare State: The growth of the welfare state leads directly to an increase in public services.
• Growing Business Competition: Increased competition between businesses creates a need for specialized services that improve product quality, value, or marketing strategies.

Regional Disparities and Key Activities

While the increase in service sector employment and production is evident across all Autonomous Communities, large regional disparities exist. The tertiary sector reaches maximum values in regions like the Community of Madrid, Catalonia, Andalusia, and certain communities along the Mediterranean coast. Services hold a particularly significant role in the Balearic Islands.

Trade, tourism, and public services are the main service activities in our country, concentrating approximately 80% of production. Transport also plays an important role, characterized by strong spatial concentration.