The Correlation between GDP PPP Per Capita and GDP PPP Per Area in South America

The correlation between per capita gross domestic product based on purchasing power parity (GDP PPP) and GDP PPP per area in South America is moderately strong.  The three largest economies on a per capita basis have either a moderate or high per area GDP relative to other countries on the continent.

Findings

• The correlation coefficient between per capita Gross Domestic Product (GDP) in Purchasing Power Parity (PPP) and minimum wage in South America is 0.53.
• As the per capita GDP PPP increases in South America, the per area GDP PPP somewhat increases.
• Bolivia has the lowest per capita GDP PPP and the third lowest per area GDP PPP.
• Guyana has the lowest per area GDP PPP and the second lowest per capita GDP PPP.
• Chile has the largest per capita GDP PPP and the third highest per area GDP PPP on the continent.
• Ecuador on the other hand, has the highest per area GDP PPP but the fourth lowest per capita GDP PPP.

Caveats

• As always, correlation does not imply causation.
• French Guiana and the South Georgia and the South Sandwich Islands were missing data.

Details

Every country that has a per capita GDP PPP of at least 15,000 international dollars, also has a GDP PPP per square kilometer of at least 300,000 international dollars.  However, there are several countries with a per capita GDP PPP below 15,000 international dollars that have a GDP PPP per square kilometer of at least 300,000 international dollars.

Countries that make less than 200,000 international dollars per square kilometer also have a per capita GDP PPP of less than 15,000 international dollars.

Country Codes

Code	Country	GDP PPP Per Square Kilometer	Per Capita GDP PPP
AR	Argentina	328,303.84	20,047
BO	Bolivia	76,105.45	7,218
BR	Brazil	377,655.93	15,242
CL	Chile	603,015.2	24,113
CO	Colombia	632,315.99	14,130
EC	Ecuador	650,901.99	11,109
GY	Guyana	29,762.43	7,873
PY	Paraguay	167,190.33	9,396
PE	Peru	334,349.25	12,903
SR	Suriname	48,596.02	13,988
UY	Uruguay	441,506.11	21,527
VE	Venezuela	443,077.68	13,761

Sources

"Report for Selected Country Groups and Subjects (PPP Valuation of Country GDP)."  https://www.imf.org/external/pubs/ft/weo/2017/01/weodata/weorept.aspx?pr.x=43&pr.y=19&sy=2017&ey=2017&scsm=1&ssd=1&sort=country&ds=.&br=1&c=512%2C672%2C914%2C946%2C612%2C137%2C614%2C546%2C311%2C962%2C213%2C674%2C911%2C676%2C193%2C548%2C122%2C556%2C912%2C678%2C313%2C181%2C419%2C867%2C513%2C682%2C316%2C684%2C913%2C273%2C124%2C868%2C339%2C921%2C638%2C948%2C514%2C943%2C218%2C686%2C963%2C688%2C616%2C518%2C223%2C728%2C516%2C558%2C918%2C138%2C748%2C196%2C618%2C278%2C624%2C692%2C522%2C694%2C622%2C142%2C156%2C449%2C626%2C564%2C628%2C565%2C228%2C283%2C924%2C853%2C233%2C288%2C632%2C293%2C636%2C566%2C634%2C964%2C238%2C182%2C662%2C359%2C960%2C453%2C423%2C968%2C935%2C922%2C128%2C714%2C611%2C862%2C321%2C135%2C243%2C716%2C248%2C456%2C469%2C722%2C253%2C942%2C642%2C718%2C643%2C724%2C939%2C576%2C644%2C936%2C819%2C961%2C172%2C813%2C132%2C199%2C646%2C733%2C648%2C184%2C915%2C524%2C134%2C361%2C652%2C362%2C174%2C364%2C328%2C732%2C258%2C366%2C656%2C734%2C654%2C144%2C336%2C146%2C263%2C463%2C268%2C528%2C532%2C923%2C944%2C738%2C176%2C578%2C534%2C537%2C536%2C742%2C429%2C866%2C433%2C369%2C178%2C744%2C436%2C186%2C136%2C925%2C343%2C869%2C158%2C746%2C439%2C926%2C916%2C466%2C664%2C112%2C826%2C111%2C542%2C298%2C967%2C927%2C443%2C846%2C917%2C299%2C544%2C582%2C941%2C474%2C446%2C754%2C666%2C698%2C668&s=PPPGDP&grp=0&a=.  International Monetary Fund.