Oasis Kodila?Tedika|Simplice Asongu
The effect of intelligence on financial development: A cross-country comparison
University of Kinshasa|African Governance and Development Institute
assess correlations intelligence financial development 123 countries using data averages 20002010 cognitive human capital measured terms iq lynn vanhanens iq measures cognitive ability rindermanns combination psychometric student assessment test measures cognitive skills hanusheks student assessment test measures financial development appreciated financial intermediary stock market development perspectives shortterm financial measures private domestic credits whereas longterm financial indicators include stock market capitalization stock market value traded turnover ratio following findings established based standardized correlations 1 nexus private credit positive correlations iq cognitive ability broadly similar cognitive skills lower relative cognitive ability 2 correlation intelligence financial variables broadly similar higher degree association stock market value traded 3 underlying findings broadly confirmed terms sign correlation though magnitude correlation higher lower addition social capital ethnic fractionalization institutions income 4 continents excluded control extreme effects baseline results confirmed following order continental importance financial development established increasing magnitude americas europe oceania africa asia