This study examines the relationship of different factors that might influence labor productivity in Nicaragua, a time series economic regression model was utilized in two separate stages, owing the number of observations varied according with availability of data. First stage is based of 28 observation where the implicated factors were; Agricultural land per-capita, Net Stock machinery, Economy environment and government regime. The second one, studied 15 observations whereas economic variables were include as foreign direct investment, health and education expenditure. Positive and negative effects were obtained on Agricultural Productivity Labor ratio. Agricultural Land Per-capita and socialist government regime showed a positive relationship on APL ratio, while Net stock machinery and the Economic context affects negatively Labor productivity. In the second stage health expenditure was the only with positive relation on APL ratio.