Taxes link to domestic savings
Comparing Taxes less subsidies on products (current LCU) with Gross domestic savings (current LCU), per capita across 169 countries, 2011–2025.
- Rank correlation
- +0.62
- Holding size constant
- +0.66
- Countries compared
- 169
- Period
- 2011–2025
What might link these
The relationship between taxes less subsidies on products and gross domestic savings per capita might be influenced by a country's economic policies and stability. A careful reader should consider that government spending could be a likely confounder, as it affects both tax revenue and savings rates. The correlation suggests a potential association, but its underlying causes require further exploration.
Why this is not proof of anything
This is a correlation across countries, not an experiment. It cannot show that either indicator causes the other, and both may simply follow a third thing. This correlation could mislead by implying a direct causal link between taxation and savings, when other factors like government expenditure and economic growth may be driving the relationship.
The second figure above repeats the measurement with national population and income held constant. It is the more conservative number: a relationship that largely disappears there was mostly telling you that larger, richer countries have more of most things.
How this was measured
Both indicators were ranked across every country reporting each, and the two rankings compared — ranks rather than raw values, because a handful of very large countries can otherwise manufacture a relationship on their own. The calculation is arithmetic over figures already published on this site; the commentary above is drafted from the two indicator names and the resulting coefficients.