Descriptive Analysis of Relationship between GDP Sector Composition and Level of Economic Development

The goal of this thesis is to conduct a descriptive analysis of the gross domestic product (GDP) sector composition of countries around the world and their respective levels of economic development with consideration of their geographic locations, economic growth over time, and their economic sizes. This analysis will be centered around exploring the differences of the GDP composition of countries at different levels of development, testing the consensus that developed countries tend to be focused on the services sector in comparison to less developed ones, who trend towards focus on the agricultural one. These findings will be primarily attained through use of data interpretation and regression analysis utilizing the statistical software packages of Stata and Excel. Results and analysis are to be supported by powerful data visualizations created in Tableau and the careful examination of said visualizations.
Due to the sheer amount of macro-economic factors and the case specific incidences involved in the determination of a country’s level of economic development, this thesis will focus entirely on the descriptive analysis of the relationship between a country’s GDP sector composition within the agricultural, industrial, and services sectors and their level of economic development measured in GDP per capita. This study will explore the relationship between GDP per capita and geographic regions, growth over time, and economic size as well. These relationships will be used to determine if said factors need to be controlled for when analyzing the relationship between a country’s sector composition and its level of development. A better understanding of what countries look like at all levels of development helps build a complete picture of a what makes a country successful and could be used in future studies that seek to predict economic success based on more and/or separate variables.