**Figure 12: Sector shares in total value added in Togo (percent), 1965 to 2009 (LHS) and Trends in Growth Rates in Value Added GDP, Togo, 1966‐2009 (RHS).**

<!-- Start of picture text --> factor Costs. 1965 2009<br>100% 15%<br>80% 10%<br>60%<br>5%<br>40%<br>20% 0%<br>0% -5%<br>Primary Secondary Tertiary Primary, HP filter Secondary, HP filter Tertiary, HP filter<br>% Chg.<br>1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008<br><!-- End of picture text --> <!-- Start of picture text --> Primary<br><!-- End of picture text --> <!-- Start of picture text --> Secondary<br><!-- End of picture text --> _Notes_ : All calculations use data in constant LCUs. There are small differences in Gross value added at factor cost in the table and the DDP data due to incomplete information on some activities.

_Source_ : Authors' calculations based on data from the World Bank, DDP data, and Government of Togo.

**Table 2: Shares, Growth rates and Contribution to Growth, Togo, 1960s‐2000s.**

|**,**<br>**, g**<br>**Shares in Value Added GDP**|<br>**g**<br>**,**<br>**y**<br>**1960s**|<br>**1970s**|**, ,**<br>**,**<br>**1980s**|<br>**y**<br>**1990s**|<br>**2000s**|
|---|---|---|---|---|---|
|Primary|32.2|26.2|29.4|44.31|46.50|
|Secondary|18.9|21.3|21.5|21.24|24.90|
|Tertiary|48.8|52.5|49.1|34.45|28.60|
||100.0|100.0|100.0|100.0|100.0|
|**Growth in VA GDP**||||||
|Primary|6.2%|2.8%|4.5%|3.1%|2.5%|
|Secondary|11.2%|7.8%|-0.2%|2.6%|3.6%|
|Tertiary|7.3%|3.6%|-0.4%|-0.8%|-2.0%|
|Total VA GDP|7.7%|4.3%|1.1%|1.5%|1.4%|
|**Contribution to Growth**||||||
|Primary|2.0%|0.7%|1.3%|1.4%|1.2%|
|Secondary|2.1%|1.7%|0.0%|0.6%|0.9%|
|Tertiary|3.6%|1.9%|-0.2%|-0.3%|-0.6%|
|Total VA GDP|7.7%|4.3%|1.1%|1.5%|1.4%|

_Notes:_ All calculations use data in constant LCUs. _Source:_ Authors' calculations based on data from the World Bank, DDP and Government of Togo.

**The main conclusion from this discussion is that any incremental growth in the Togo economy in the last three decades, has been achieved out of growth of the country’s labor force.** Unable to find _productive_ employment in tertiary activities, or employment opportunities in general in industry, Togolese citizens have found employment in subsistence agriculture or have used their resource endowments in other primary activities. Subsistence activities and the animal subsector generated over 85% of primary GDP and 40% of overall value added in the 2000s (compared to 29% in 1990). However, the ability of several manufacturing activities to thrive must also be highlighted; the cement sector making up for decreased activities in extractive industries from phosphates, and the transportation and communication sectors ability to maintain a modest growth rate.

**An alternative way to observe sector dynamics and their contribution to GDP is the so called Shapley decomposition, which highlights changes in average productivity, employment or labor reallocation by sector (** World Bank, 2007b **)**<sup>**23**</sup> **.** It is confirmed that agriculture and, to a lesser extent, services, mostly absorbed the main part of the increased labor force between 1981 and 2005, combined with an increased (+17%) but still low labor productivity in agriculture and significantly lowered productivity (‐64%) in services (Figure 13). Labor productivity was highest within the industry sector, growing by 6% during the period, Even though growth in employment was high for the industry sector itself, the absolute number of job opportunities created was small. In 1981, agriculture

> 23 Historic employment data in Togo is quit scarce. In the case of value added GDP, this decomposition necessitates of at least two data points for each sector value added variable and for the employment levels, as well as two data points for indicators of population, working age population, labor force and employment. As one is interested in long term trends, it is recommended for data points to be at least 10 years apart, and that they correspond to normal (non‐shock) years. Fortunately, employment data by sector in Togo is available for 1981 and 2005 by combining information from the World Bank DDP data base and the CWIQ 2006 survey, and real Value Added data by main economic sectors from Government of Togo.

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