Performance of IT Software and Service Sector in GDP Contribution of Developing Countries

Abstract

According to the WESP (World Economic Situation and Prospects, 2019) the countries in the world are divided into; developed countries, transition countries and developing countries. The United Nations Economic and Social Council decided to choose some of the countries from developing countries as least developed countries as per three different indexes; Index of human assets, per capita GNI and economic vulnerability index. The paper aims to analyze the performance of the IT software and service sector in GDP (Gross Domestic Product) contribution of developing countries as well as least developed countries, least developed countries are chosen to have a comparison between the performances of those sectors in different economies. The data has been chosen from United Nation Conference on Trade and Development from 2000s to 2017, and for comparison 20 developing countries and 14 least developed countries from these regions; Latin America, Africa, Western Asia, and East Asia as well as South Asia, have been chosen too. We found; the average share of the service sector and IT software sector were 53 percent and 32.6 percent in GDP growth of all developing countries, and 47.02 percent and 22.57 percent in GDP growth of all least developed countries, respectively, that shows the share of these sectors in developing countries are higher than the least developed countries, and as per the data, the performance of these sectors are much higher in developing countries than the least developed countries