IQ and the Wealth of Nations

This work tests the hypothesis on the causal relationship between the average national intelligence (IQ) and the gap between rich and poor countries by empirical evidence. Based on a survey of national IQ tests, their results challenge previous theories of economic development and provide a new basi [...]
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This work tests the hypothesis on the causal relationship between the average national intelligence (IQ) and the gap between rich and poor countries by empirical evidence. Based on a survey of national IQ tests, their results challenge previous theories of economic development and provide a new basis to evaluate the prospects of economic development throughout the world. They begin by reviewing and evaluating some major previous theories. The context of intelligence is then described and IQ introduced. Next they show that intelligence is a significant determinant of earnings within nations, and they connect intelligence with various economic and social phenomena. The sociology of intelligence at the level of sub-populations in nations is examined, and the independent (national IQ) and dependent (various measures of per capita income and economic growth rates) variables are defined and described. They then provide empirical analyses starting from the 81 countries for which direct evidence of national IQ is available; the analysis is then extended to the world group of 185 countries.