Investigating the effective Factors on Labor Force Productivity in Production Function Frame Work (With an emphasis on entrepreneurship

Abstract

Nowadays, the entrepreneurship is the least necessity needed for a country to increase its ability to compete effectively with other countries. Along with globalization, all the countries in order to have an effective competition should move forward to the new technologies and innovation. In this regard the Vector auto-regressive (VAR) with the help of (Eviews8) software was used. To investigate the causal relationship between the variables, the parallel Granger causality test was used. The obtained results showed that there was a causal relationship between the labor Force productivity and entrepreneurship. The result of stimulation reaction indicated that the variables have the most effects on their past values. At the end of shock period, the most effect was on net capital and entrepreneurship logarithms respectively. The results of variance analysis of prediction error also showed that the fluctuations of entrepreneurship in the short term are mainly as high as 99.5 percent. Then in the fifth period, the share of the remaining variables reaches about 42 percent and the logarithm of net capital and logarithm of labor productivity respectively have the highest and the lowest shares in explaining this variable.

Keywords

• labor productivity
• innovation
• causality test
• var model