Internaional Bussiness

Analyzing gross domestic product (GDP) by economic

activity reveals the increasing importance of services

worldwide. This trend is most noteworthy in developed

countries, where structural change is taking the form of

de-industrialization. In developing countries, especially

Africa and Oceania, agriculture is a much more essential

economic activity. Structural change in most developing

countries takes place primarily through industrialization.

Asian developing countries have the highest weight (40%)

of industry in GDP, while the lowest weight (31%) is found

in developing America.

The structure of demand, measured by the expenditure

components of GDP, has remained relatively stable since

1980. Most of global output goes to final consumption.

The least developed countries have the highest share of

private consumption. They are followed by North America

and developing America. Government consumption

shares are lower in developing countries than in developed

countries.

Capital accumulation is an essential element of economic

growth in developing countries. In 2001, the share of

investment in GDP was highest in Asian developing

countries, particularly the rapidly growing economies of

South, East and South-East Asia. The lowest shares of

investment in GDP are found in South America and sub-

Saharan Africa.

Major changes come from trade, which has increased as a

proportion of output in most economies, reflecting greater

openness. While in developed countries trade shares in

GDP have not changed substantially, in developing

countries the export share increased from 26% in 1980 to

36% in 2001, and the import share from 22% to 33%. The

evolution of international trade shares in GDP is most

remarkable in developing Asia, specifically South and East

Asia.

● Services