What is Total Factor Productivity (TFP)

The transition to the green economy has changed the way of doing business and has revealed the business models expressed as green jobs. This study examines the impacts of green jobs in EU countries on productivity in line with different methods. In this context, the data used in the study was between 2011 to 2019. The analysis in the study, which investigates the effects of green jobs increase on total factor productivity in EU countries, is carried out with panel ARDL approach, Kao Panel Cointegration methods. According to the estimation values obtained in the study, it is seen that there is a positive and statistically significant relationship between the increase in green jobs and total factor productivity. On the other hand, fixed capital investments and foreign direct investments, among the variables discussed in the study, have a positive and statistically significant effect on total factor productivity.