GDP Correlations

The PAP Blog has some great charts showing the correlation between high GDP and 17 measures ranging from corruption and poverty to resources and education. Their findings:

• low levels of GDP and high levels of corruptions are correlated
• poverty reduction and per capita income growth performances are correlated
• countries with lots of natural resources tend to do worse than countries with less resource wealth, both in terms of economic growth and in political, social and human rights terms
• economic freedom is correlated with income
• Rule of law is correlated to GDP per person
• There is only a partial correlation between democracy and economic growth but stronger correlation between democracy and level of GDP
• countries which have experienced a transition to democracy experience higher average growth after the transition
• GDP per capita and enrolment rates in secondary education are correlated
• As per capita income increases to around US$5,000 per annum, environmental quality falls, but then from around $8,000 per capita onwards, the environmental quality rises again
• GDP and happiness is correlated
• Unemployment is negatively correlated to GDP growth but not to GDP level
• Countries with more equal land distribution tend to grow faster
• GDP per capita is correlated to percentage of population who donate to charity
• GDP is correlated to individualism in a country
• Wealthier countries tend to have less income inequality
• GDP growth is correlated to incumbent Government’s being re-elected

The above is one reason I find it amusing when certain MPs rail against GDP and GDP growth. I guess they think it is call coincidental, and none of it causative.