IQ and the wealth of nations: How much reverse causality?

This paper uses data from 130 IQ test administrations worldwide and employs regression analysis to try to quantify the impact of living conditions on average IQ scores in nationally-representative samples. The study emphasizes the possible role of conditions at or near the test-takersʹ time of birth. The paper finds that the impact of living conditions is of much smaller magnitude than is suggested by just looking at correlations between average IQ scores and socioeconomic indicators. After controlling for test-takersʹ region of ancestry, the impact of parasitic diseases on average IQ is found to be statistically insignificant when test results from the Caribbean are included in the analysis. As far as IQ and the wealth of nations are concerned, causality thus appears to run mostly from the former to the latter. The test-takersʹ region of ancestry dominates the regression results. While differences in average scores worldwide can thus be plausibly viewed as being influenced by genetic differences across world regions, it is also possible that score differences are influenced by regional differences in culture that are independent of genetic factors. Differences in average IQ across world regions may change in the years ahead insofar as the strength of Flynn effects may not be uniform, but some regional differences in average g levels seem likely to continue indefinitely.