Globalisation and labor productivity in OECD regions

Abstract

Globalisation, coupled with advancement in information, communication and technology has increased the demand for quality labour, having knowledge and competing to maximise production. Labour productivity is the important sources income and economic growth. The objective of this paper is to analyse the depth of globalisation impact on labour productivity in the OECD regions. The analysis has used data from the OECD Statistics and World Development Indicators of World Bank, comprising 22 years, from 1990-91 to 2011-12. A multiple regression model using panel data is estimated to analyse the relationship between globalization and labour productivity. Findings of the study show that globalisation indicators like FDI and economic openness have positive and significant impact on labour productivity. Then, a number of possible determinants pertaining to economic factors and labour factors have been explored as well.