The Effect of Efficiency Enhancers Factors on Total Factor Productivity with the Emphasis on Technological Readiness in Selected Countries

In this paper, we tried to estimate the effect of increasing efficiency factors, including technological readiness, goods market efficiency, labor market efficiency, financial market development, higher education and training, and market size on total factor productivity in 40 selected countries during 2011-2017 using GMM estimator. Every state distinguished by the overall index and the technological readiness' components in each model. The results show that the estimated coefficient of the overall technical readiness index and its four components on total factor productivity is positive and significant. Also, the effects of control variables including the goods market efficiency, labor market efficiency; financial market development, higher education and training, and market size on total factor productivity are positive and significant.