PRIMARY PRODUCTION (ECONOMICS)

'Primary production' is one of the fundamental sectors of an economy. It includes agriculture and resource extraction. In subsistence economies, primary production is the largest sector.
Primary production has the least value added. Economies heavily dependent on primary production suffer from the resource curse and fluctuations in the price of the produced commodity have devastating effects on the entire economy. They tend to become mere raw material providers for more developed economies, for example banana republics.