English

Characterizing the development of sectoral Gross Domestic Product composition

General Finance 2014-09-15 v3 Physics and Society

Abstract

We consider the sectoral composition of a country's GDP, i.e. the partitioning into agrarian, industrial, and service sectors. Exploring a simple system of differential equations we characterize the transfer of GDP shares between the sectors in the course of economic development. The model fits for the majority of countries providing 4 country-specific parameters. Relating the agrarian with the industrial sector, a data collapse over all countries and all years supports the applicability of our approach. Depending on the parameter ranges, country development exhibits different transfer properties. Most countries follow 3 of 8 characteristic paths. The types are not random but show distinct geographic and development patterns.

Keywords

Cite

@article{arxiv.1210.3543,
  title  = {Characterizing the development of sectoral Gross Domestic Product composition},
  author = {Raphael Lutz and Michael Spies and Dominik E. Reusser and Jürgen P. Kropp and Diego Rybski},
  journal= {arXiv preprint arXiv:1210.3543},
  year   = {2014}
}

Comments

7 pages, 4 figures