National IQ and economic outcomes

One of the most consequential parts of Richard Lynn’s work is the establishment of a comprehensive data set of “national IQ” for nearly all countries in the world. The present contribution demonstrates the use of this database for the explanation of two economic outcomes: (1) economic growth and level of attained wealth at the country level; and (2) income distribution in countries as measured by the Gini index. The results show that high IQ is associated not only with high per-capita GDP and fast economic growth, but also with more equal income distribution. These outcomes are not mediated by educational exposure.

► Average IQ is an independent predictor of economic growth.
► IQ is slightly better than school achievement as predictor of economic growth.
► In poor countries, part of the IQ effect is mediated by reduced fertility rates.
► At average IQs up to 95, higher IQ is associated with lower income inequality.