Contribution of Economic Sectors to GDP Formation in the World’s Smallest Economies

This chapter presents a detailed analysis of the structure of GDP creation and employment in the world’s smallest economies over the years. A comparison of the shares of each sector in 1990 and 2019 allows for the observation of changes that have occurred in 93 economies over the course of almost three decades. One of the principal factors responsible for the structural transformation of economies has been globalization, which has resulted in an increase in international trade in goods and services, intensified flows of capital and people, and the dissemination and diffusion of information and telecommunications technologies. Consequently, this has led to an increase in the proportion of the service sector in GDP formation and employment, which indicates a higher level of economic development.