if your nation is "good at chess" that nation has a higher chance of [being] economically substandard.
This certainly holds true if we compare the US with eastern Europe. I don't think chess is the cause of this, but rather a consequence. It is a relatively cheap game to play, and so has remained popular in relatively impoverished countries. Unfortunately, in the United States, it has been replaced by video games, television, etc. However, I would argue that chess is the better use of one's time, because it does teach decision-making skills.
A similar analogy could be made about the popularity of football, baseball, and basketball in the US, which require relatively large amounts of money to play properly, and soccer or rugby which can be played in a dirt field with nothing more than a ball. Once again, I would suggest that the cheaper game is better, but there seems to be a tendency to desire "more", even though the added features add expense and reduce quality. We could likewise compare folk music, using a mere fiddle or harmonica, with a modern rock concert. The latter is far more expensive, but less satisfying. Perhaps less is more.
So, Andorra is NOT a stronger chess country than the US?
Do I need to repeat myself?
And here I dont even know which side you would take.