The differences in relative industry productivity across countries are of interest and importance for several reasons. The difference in total factor productivity (TFP) explains comparative advantage, international differences in price structure, and gaps in income and growth across countries. Productivity comparison by industry is attracting interest because the overall TFP comparison to the economy has strong assumptions such as the same production function and identical factor prices over all industries. Irrespective of the sizes of manufacturing industries in the economy, the industries...
The differences in relative industry productivity across countries are of interest and importance for several reasons. The difference in total factor ...