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National IQ and National Productivity: The Hive Mind Across Asia

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Abstract

A recent line of research demonstrates that cognitive skills—intelligence quotient scores, math skills, and the like—have only a modest influence on individual wages, but are strongly correlated with national outcomes. Is this largely due to human capital spillovers? This paper argues that the answer is yes. It presents four different channels through which intelligence may matter more for nations than for individuals: (i) intelligence is associated with patience and hence higher savings rates; (ii) intelligence causes cooperation; (iii) higher group intelligence opens the door to using fragile, high-value production technologies; and (iv) intelligence is associated with supporting market-oriented policies. Abundant evidence from across ADB member countries demonstrates that environmental improvements can raise cognitive skills is reviewed.

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Bibliographic Info

Article provided by Asian Development Bank in its journal Asian Development Review.

Volume (Year): 28 (2011)
Issue (Month): 1 ()
Pages: 51-71

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Handle: RePEc:ris:adbadr:0003

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Keywords: Human capital; Institutions; Economic Growth; Intelligence;

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Cited by:
  1. Niklas Potrafke, 2011. "Intelligence and Corruption," Working Paper Series of the Department of Economics, University of Konstanz 2011-36, Department of Economics, University of Konstanz.
  2. Isaac Kalonda-Kanyama & Oasis Kodila-Tedika, 2012. "Quality of Institutions : Does Intelligence Matter?," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 201206, University of Kansas, Department of Economics, revised Apr 2012.
  3. Kodila-Tedika, Oasis, 2012. "Governance and Intelligence: Empirical Analysis from African Data," MPRA Paper 39937, University Library of Munich, Germany.
  4. Jones, Garett, 2012. "Cognitive skill and technology diffusion: An empirical test," Economic Systems, Elsevier, vol. 36(3), pages 444-460.

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