Assessing the Effects of Entrepreneurship and Business Environment on Productivity Components: Evidence from Selected Developing Countries

In this paper evaluates the effects of entrepreneurship and business environment on productivity components(total factor productivity, labor productivity, and capital productivity) in 15 selected developing countries over the period of 2006 to 2017 with using of dynamic panel with generalized method of moments approach(GMM). The results showed that, entrepreneurship and business environment had a positive effect on productivity components and the effectiveness of total factor productivity was greater than labor productivity and capital productivity. But still, due to the entrepreneurship,s barriers and business environment,s limitation, these two indicators have not reached to ideal levels in developing societies and we are still witnessing significant fluctuations in this area, so these positive effects may not be sustainable in these communities therefore, the lack of improvement and expansion of these indicators can have irreparable consequences for trend of productivity components. Therefore, the need for new reform in these two areas is essential. Accordingly, is suggested to do sustainable and coherent planning for improve and expand of entrepreneurship indicators and business environment until from in this way, can provide the basis for further promotion of productivity components.