Income linked to industry value
Comparing Industry (including construction), value added (constant LCU) with Gross domestic income (constant LCU), per capita across 167 countries, 2011–2025.
- Rank correlation
- +0.79
- Holding size constant
- +0.93
- Countries compared
- 167
- Period
- 2011–2025
What might link these
The strong correlation between gross domestic income per capita and industry value added may be due to the fact that a strong industry sector can drive economic growth and increase incomes. However, a careful reader should be cautious about assuming causation and consider other factors, such as education and innovation, which could also play a role. A likely confounder is the level of technological advancement in a 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 could mislead by implying a direct causal relationship between industry value and income, when in fact other underlying factors may be driving both indicators.
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.