GMAT Scores as a Proxy for National IQ

Abstract

This study develops a straightforward transformation of Graduate Management Admissions Test (GMAT) scores into an equivalent IQ score using countries for which both measures are available; and, validates the same for countries for which direct measurements of National IQ are not available. The GMAT is an aptitude test used for admission into many MBA and other graduate programs in business. National average GMAT scores are found to be positively correlated with well-established measures of cognitive ability provided the GMAT scores are corrected for participation rate. Even though GMAT scores are indicated to be prone to measurement error, they drive ethnic-based proxies of National IQ to insignificance in regression analysis of GDP per capita.