What are the determinants of productivity? Explain two policies that can help to improve the productivity of a nation?

Local Fiscal Incentive and Protetionism

Explanation:

1)     National Fiscal incentives: a country could approve a new policy that gives fiscal incentives to the industry in determined sectors (or all of them) such as tax-exempt, making it more attractive for industries to produce in that country in comparison to another one without that kind of policy. Usually, this is made by states to attract investments that otherwise would go to other states or countries.

2)     Protectionism: a country could elevate taxes on imports, making more expensive for a seller to buy internationally and sell internally. In consequence, the local industry would be incentivized to produce more as they could have a cheaper product than international competitors.