ABSTRACT
In advanced countries, demand and supply characteristics exhibit a somewhat different pattern. At comparatively high levels of income the demand for social services, entertainment and recreation tends to absorb a larger proportion of income gains than manufacturing, and the composition of demand once again changes accordingly. Changes in the sectoral composition of GDP are a frequently used measure of structural change. Because rates of growth can diverge widely, sectoral shares in GDP will naturally change during the course of economic advancement. Western economies experienced a continuous decline in the share of agriculture, although the rate of contraction apparently fell after 1970. Changes in the sectoral composition of a country’s GDP will alter the present and future income of producers, workers, investors, or others who are associated with a given sector. The demand for agricultural products is by no means monolithic; different characteristics apply to the markets for staples and luxury foods, to basic consumer items and speciality foods.
