Credit linked to industry value
Comparing Net domestic credit (current LCU) with Industry (including construction), value added (current LCU), per unit of GDP across 169 countries, 2013–2025.
- Rank correlation
- +0.67
- Holding size constant
- +0.72
- Countries compared
- 169
- Period
- 2013–2025
What might link these
The relationship between net domestic credit and industry value added per unit of GDP might be driven by investment in industrial development, which could increase both credit and industry output. A careful reader should consider the role of government policies and economic stability as potential underlying factors. A likely confounder could be the level of technological advancement in each country.
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 might mislead by implying a direct causal link between credit and industry growth, when in fact other factors like economic policies or technological progress could be driving both.
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.