Data Insight: Relationship Between Sectoral Workforce Percentage and Sector GDP Contribution: A Global Study

Research Questions:

Q1: Is there any Relationship between Sectoral Workforce Percentage and That Specific Sector GDP contribution?

Q2: Is there any Effect of Gender (Male/Female) on Sectoral Contribution to GDP?

Statistical Techniques to Use:

For each of the sector, perform separately:

Q1: Correlation between Workforce % and Share of GDP; repeat correlation for all 3 sectors.

Q2: apply regression to find out is there any significant effect of male/female on GDP share of that specific sector.

Table-1: Percentage of Workforce in Each Sector & Sectoral Contribution to GDP [2000-2005]

	Agriculture			Agri GDP	Industrial			Industrial GDP	Services			Services GDP
Country	Male	Female	Workers %	Share	Male	Female	Workers %	Share	Male	Female	Workers %	Share
Egypt	28	39	33.5	15	23	6	14.5	46	49	55	52	39
Ghana	60	50	55	38	14	15	14.5	23	27	36	31.5	39
Madagascar	77	79	78	28	7	6	6.5	16	16	15	15.5	56
South Africa	13	7	10	3	33	14	23.5	30	54	79	66.5	67
Uganda	60	77	68.5	33	11	5	8	25	28	17	22.5	43
Bangladesh	50	59	54.5	20	12	18	15	27	38	23	30.5	53
Indonesia	43	45	44	13	20	15	17.5	46	37	40	38.5	41
Malaysia	16	11	13.5	9	35	27	31	52	49	62	55.5	40
Pakistan	38	65	51.5	22	22	16	19	25	40	20	30	53
South Korea	7	9	8	3	34	17	25.5	40	59	74	66.5	56
Philippines	45	25	35	14	17	12	14.5	32	39	64	51.5	53
Thailand	44	41	42.5	10	22	19	20.5	44	34	41	37.5	46
Vietnam	50	60	55	21	21	14	17.5	41	23	26	24.5	38
Columbia	32	8	20	13	21	16	18.5	34	47	76	61.5	53
Costa Rica	21	5	13	9	26	13	19.5	30	53	82	67.5	62
Mexico	21	5	13	4	30	19	24.5	26	49	76	62.5	70
Nicaragua	43	10	26.5	19	19	17	18	28	38	52	45	53
United Kingdom	2	1	1.5	1	33	9	21	26	65	90	77.5	73
United States	2	1	1.5	1	30	10	20	22	68	90	79	77

(Source: World Bank, World Development Indicators (2007); taken from “Developmental Economics” Self-Instructional Material of MA (Economics) Course of Alagappa University, India; pp.121-122))

Q1: The Relationship between Workforce Percentage and That Specific Sector GDP contribution is Presented in Following Table-2 Correlation Matrix:

Table-2: Consolidated Correlation Matrix

	Agri Workforce %	Industrial Workforce %	Services Workforce %	Agri GDP Share	Industry GDP Share	Services GDP Share
Agri Workforce %	1
Industrial Workforce %	-0.78064	1
Services Workforce %	-0.97509	0.649469	1
Agri GDP Share	0.87904	-0.73348	-0.85981	1
Industry GDP Share	-0.1961	0.48218	0.096956	-0.2947	1
Services GDP Share	-0.61207	0.255256	0.674492	-0.63404	-0.551	1

Findings:

1. Agricultural Sector’s Workforce Percentage is strongly Correlated to Agricultural Sector GDP Contribution (0.879).
2. Agricultural Sector’s Workforce Share is not Related to Industrial sector’s Workforce share or Services sector’s workforce share. They have negative correlations.
3. However, Industrial sector workforce share is Positively strongly Correlated to Services Sector Workforce share (Correlation Coefficient: 0.64).
4. That means, the growth of industries leads to growth in services sector.
5. Agri GDP share is not related to Industrial GDP share or Services GDP share.
6. Industrial Workforce share is Positively related to Industrial GDP share and also weakly positively related to Services GDP share.
7. Services Workforce share is Positively strongly related to Services GDP share.
8. Agricultural, Industrial or Services GDP shares are not related to each other. All experienced negative correlations.
9. Regression of Agri workforce share, Industrial Workforce and Services workforce share on Agri GDP Share were not having any effect. (p-value>0.05)
10.  Similarly agri workforce share, industrial workforce share or services workforce share have no effect on Industrial GDP share or Services GDP share (p-value>0.05) in regression calculation.

Q2: Effect of Male/Female Workforce % on Agricultural GDP share:

Table-3: Regression of Male/Female workforce % on Agricultural GDP share

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.893869
R Square	0.799002
Adjusted R Square	0.773878
Standard Error	5.075636
Observations	19
ANOVA
	Df	SS	MS	F	Significance F
Regression	2	1638.544	819.2718	31.80146	2.66E-06
Residual	16	412.1933	25.76208
Total	18	2050.737
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	-0.27545	2.323399	-0.11856	0.907103	-5.20084	4.649933	-5.20084	4.649933
Male	0.350266	0.106296	3.295198	0.004565	0.124929	0.575603	0.124929	0.575603
Female	0.088543	0.081869	1.081522	0.295497	-0.08501	0.262099	-0.08501	0.262099

Table-4: Regression of Male/Female Workforce % on Industrial GDP share

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.500874
R Square	0.250875
Adjusted R Square	0.157235
Standard Error	9.025106
Observations	19
ANOVA
	df	SS	MS	F	Significance F
Regression	2	436.4435	218.2218	2.679128	0.099182
Residual	16	1303.241	81.45254
Total	18	1739.684
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	16.64449	7.14018	2.331102	0.033151	1.507981	31.78099	1.507981	31.78099
Male	0.281581	0.278053	1.012686	0.32628	-0.30787	0.871028	-0.30787	0.871028
Female	0.655504	0.430711	1.521911	0.147548	-0.25756	1.568571	-0.25756	1.568571

Table-5: Regression of Male/Female workforce % on Services GDP share

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.676769
R Square	0.458017
Adjusted R Square	0.390269
Standard Error	9.452449
Observations	19
ANOVA
	df	SS	MS	F	Significance F
Regression	2	1208.104	604.0518	6.760604	0.007445
Residual	16	1429.581	89.34879
Total	18	2637.684
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	31.44384	7.745556	4.059598	0.000911	15.024	47.86369	15.024	47.86369
Male	0.31114	0.337418	0.922121	0.370162	-0.40415	1.026435	-0.40415	1.026435
Female	0.158752	0.182406	0.870325	0.396993	-0.22793	0.545435	-0.22793	0.545435

Findings:

1. From Table-3, P-value<0.05 indicates that Male Workforce share has significant impact over Agricultural GDP Share.
2. In other Regression Calculations, because P-Value>0.05, there is no significant effect of Male workforce share or female workforce share on Industrial GDP share or Services GDP share. Only in case of Agricultural GDP share, male workforce has significant impact over Agricultural GDP contribution. (see Table-4 and Table-5).

Thus the above explained are the relationships between workforce Percentages and GDP shares of Agriculture, Industrial and Services sectors.

Hope this is useful.

Thank You,

Dr.Goparaju Purna Sudhakar

(https://gpsudhakar.com)

References:

1. World Bank, World Development Indicators (2007); taken from “Developmental Economics” Self-Instructional Material of MA (Economics) Course of Alagappa University, India; pp.121-122.