Improvement of labor productivity is one of the main objectives of the economic firms. Consequently, identification of the factors that affect the productivity was significantly considered by the economists. Entreprenership is one of the factors that affect the labor fo More
Improvement of labor productivity is one of the main objectives of the economic firms. Consequently, identification of the factors that affect the productivity was significantly considered by the economists. Entreprenership is one of the factors that affect the labor force productivity. Overall, entrepreneurship prepares the ground for efficient application of new technologies in the society. Moroever, entrepreneurship turns the knowledge and technologies to new goods and services and increases the labor productivity. The current study investigates the effects of development of entrepreneurship on improvement of labor force productivity in developed and developing countries using GLS regression.
The results show that in both groups of countries, human capital has an equal effect on improvement of productivity. However, the effect of per capita physical capital on labor productivity is significantly different in developed and developing countries.
It is worth noting that GEDI, entrepreneurial attitudes and entrepreneurial activities indices have significant and positive effect on improvement of labor force productivity in both developing and developed countries. However, the effect of entrepreneurial aspirations on improvement of labor productivity is posititve and insignificant.
The results of the current study show that the coefficient of entrepreneurial attitudes and activities in developing countries is less effective on labor productivity compared to developed countries.
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