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This paper identifies the factors that influence percentage contribution of sectors to gross domestic product (GDP) for a group of 32 Asian countries for two cross-section points 1994-96 and 2014-16. Development theories hypothesize that the percentage share of sectors to GDP undergoes transformation with the level of economic development of the country and the degree of competitiveness of its agricultural sector. This paper employed the use of a canonical correlation analysis for 32 Asian countries. This analysis shows that the structural changes in sectoral GDP composition in the selected Asian countries were significantly determined by the factors like employee productivity, employment growth in services sector, rising life expectancy, growth of value added in manufacturing and gross capital formation.

A Canonical Correlation Analysis of Sectoral Composition of GDP and Development in Asia