Investment and GDP efficiency show a strong link across nations.
Comparing GDP (current LCU), per unit of GDP with Gross capital formation (current LCU), per capita across 179 countries, 2011–2025.
- Rank correlation
- +0.77
- Holding size constant
- +0.80
- Countries compared
- 179
- Period
- 2011–2025
What might link these
This suggests that countries with more efficient use of their GDP (lower GDP per unit of GDP) tend to have higher gross capital formation per capita. A potential confounder could be institutional quality or economic stability, which might drive both investment and efficient resource allocation.
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. The strong correlation could be influenced by underlying factors of economic development and policy, not a direct causal link between the two measures.
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.