The Impact of Openness, Employees, Human capital and Capital intensity on Labor Productivity in Iran

Most economist accept that human resources appoint economic and social growth, then labor productivity and tend to increase it would be important. So in this paper we investigate some effective factors on labor productivity. This paper measure the impact of openness, employees, human capital and capital intensity on labor productivity in Iran over the 1354-86 period, with autoregressive distributed lag model (ARDL) For testing the existence of long-run relationship, we use bounds testing approach (pesaran&shin&smith1999).The results show that openness, human capital and capital intensity, have positive and meaningful effects on labor productivity in long-run. And employees have negative and meaningful effect on labor productivity in long-run. Structural stability tests show that estimated coefficients are stable over the studding period.