Relevance of education and intelligence at the national level for the economic welfare of people

Cognitive abilities are important for the economic and non-economic success of individuals and societies. For international analyses, the collection of IQ-measures from Lynn and Vanhanen was supplemented and meliorated by data from international student assessment studies (IEA-Reading, TIMSS, PISA, PIRLS). The cognitive level of a nation is highly correlated with its educational level (r = .78, N = 173). In international comparisons, it also shows a high correlation with gross domestic product (GDP, r = .63, N = 185). However, in cross-sectional studies, the causal relationship between intelligence and national wealth is difficult to determine. In longitudinal analyses with various samples of nations, education and cognitive abilities appear to be more important as developmental factors for GDP than economic freedom. Education and intelligence are also more relevant to economic welfare than vice versa, but at the national level the influence of economic wealth on cognitive development is still substantial.