The Effect of Entrepreneurship on Total Productivity Productivity

Document Type : Original Article


1 Professor of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

2 Associate Professor of Economics, Alzahra University, Tehran, Iran

3 MA in Economics, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran



The promotion of total factor productivity is one of the economic goals, and the recognition of the factors influencing it has always been emphasized by economists. Entrepreneurship can be mentioned as one of the most important factors affecting the promotion of total factor productivity. Considering the importance of this issue, the present study assesment the role of entrepreneurship on total factor productivity in three groups of countries Factor-oriented (9 countries, including Iran), efficiency- oriented (10 countries) and innovation-oriented (16 countries) using generalized moment of method (GMM) during the period of 2008-2015. The results of the study indicate that the positive and significant impact of the entrepreneurship index and each of the five main indices (nascent entrepreneurial, early-stage entrepreneurial, new business owners, established business owners and exit from business) on the total factor productivity in the studied countries. The index coefficient of nascent entrepreneurial in factor-oriented countries is greater than efficiency- oriented and innovation-oriented countries. Also, the impact of openness, information communication and technology, education, and capital intensity were examined as controlling variables in the model among these, the effect of openness on total factor productivity in factor-oriented countries is meaningless, and in the efficiency- oriented and innovation- oriented countries is positive and meaningful, the effect education of positive and meaningful, the effect of capital intensity is positive and meaningful, and the effect of information and communication technology in the factor-oriented and innovation- oriented countries is negative and meaningless and in the efficiency- oriented countries group is positive and meaningful.


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