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Characterizing the development of sectoral Gross Domestic Product composition


  • Raphael Lutz
  • Michael Spies
  • Dominik E. Reusser
  • Jurgen P. Kropp
  • Diego Rybski


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.

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  • Raphael Lutz & Michael Spies & Dominik E. Reusser & Jurgen P. Kropp & Diego Rybski, 2012. "Characterizing the development of sectoral Gross Domestic Product composition," Papers 1210.3543,, revised Jun 2013.
  • Handle: RePEc:arx:papers:1210.3543

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