Research on International Comparison of Industry TFP Level

International comparison of industry TFP level is an important part of productivity-s international comparison and plays an important role in industry international competitiveness research. This paper respectively derives the model measuring TFP level gap from the bilateral translog production function and from bilateral translog price function. Then the paper reports 33 industries- TFP gap between China and Japan for the 1995 benchmark year by using the latter model. The finding is that only 7 industries- TFP in China are bigger than the ones in Japan in 1995, which reflects price competitive advantage to Japan.