Abstract
This note provides a cross section analysis to investigate reasons for the differences in the cost structure of Gross Domestic Product exhibited by some 45 countries with a view to shedding some light on the determinants of these structures about which surprisingly little is known. The analysis makes use of some appropriate econometric models which encompass a number of theoretically plausible explanatory variables. Income per capita, population size, the share of the government sector and the degree of industralisation were found to be important determinants in “explaining” differences in compensation of employees and operating surplus between countries.
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