The effect of government size on labor productivity in member countries of OPEC

The purpose of this study is to investigate the effect of government size on labor productivity in OPEC member countries during the period 1990–2010 using a panel data approach. Results of the study suggest that the effect of government size on labor productivity is negative and statistically significant. On the other hand, the effect of globalization on labor productivity is negative and statistically significant, as well. Moreover, due to the results, labor force has a negative effect on productivity and investment has a positive and significant effect on labor force.