The Impact of Government Economic Policies on Labour Productivity in Selected Countries of ECD

Proper and logical use of abilities and talents of human resources in any society is one of the main causes of economic development, and improves the living standards of a nation. Therefore, evaluating the role and impact of economic policies on labour productivity is of great importance. In this study, using vector autoregressive panel (Panel VAR) and in the form of econometric model, we have tried to test the impact of government economic policies on labour productivity in selected OECD countries over the period of 2000- 2014. The results show that, in the long term, government investments are indexes determining the quality of governance among countries and openness of economy is the most important variable affecting labour productivity, so that all except the quality variable of regulation have a positive impact on labour productivity.