A Comparison of TFP Levels of Listed Firms in the United States and Japan

Author Name KWON Hyeog Ug  (Faculty Fellow, RIETI / Nihon University)
Creation Date/NO. March 2011 11-J-019
Research Project Research on Productivity Growth in Service Sector
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In this paper, we provide a consistent comparison of total factor productivity (TFP) levels of listed firms in both the U.S. and Japan by using firm-level data based on consolidated financial statements covering 2000-2005. We find that U.S. firms are more productive than Japanese firms in manufacturing and other service sectors, whereas the TFP levels of U.S. firms in communications, commerce, and other industries (construction and transport, etc.) are not significantly different from those of Japanese firms.