Wednesday, April 15, 2009
GDP per sector and how countries meassure up
Generally I find the whole division of GDP into agriculture, industry and services to be woefully obsolete, but when you look at just who worldwide dominates each sector, one can see a pattern.
It was to be expected that agriculture is reasonably distributed worldwide, less so for industry, but it is services that is completely dominated by the developed countries, for a sector that generally dominates even within individual countries themselves it is startling how little the developing world contributes.
Clearly there needs to be better differentiation within this subgroup in order to reach more adequate conclusions. A case in point is Iceland, which grew exponentially due to financial services but crashed recently because of it, clearly those types of sub-sectors are misleading as they measure fake wealth. However exports in culture are different in that they are the most solid representation of wealth IMHO, Hollywood is the US's #1 export industry (which in turn is defined a service) Japan produces anime etc. And so on. Intellectual property is what really adds value nowadays, even if that value is hidden in manufacturing. It simply is a nobrainer.
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It was to be expected that agriculture is reasonably distributed worldwide, less so for industry, but it is services that is completely dominated by the developed countries, for a sector that generally dominates even within individual countries themselves it is startling how little the developing world contributes.
Clearly there needs to be better differentiation within this subgroup in order to reach more adequate conclusions. A case in point is Iceland, which grew exponentially due to financial services but crashed recently because of it, clearly those types of sub-sectors are misleading as they measure fake wealth. However exports in culture are different in that they are the most solid representation of wealth IMHO, Hollywood is the US's #1 export industry (which in turn is defined a service) Japan produces anime etc. And so on. Intellectual property is what really adds value nowadays, even if that value is hidden in manufacturing. It simply is a nobrainer.
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