US Manufacturing Dominates China with 17x Higher Labor Productivity
The study compared productivity in the manufacturing sectors of the United States and China. They found that while the U.S. has much higher labor productivity than China, the differences in total factor productivity (TFP) and capital productivity are smaller. Specifically, U.S. labor productivity is about 17.67 times higher than China's, but U.S. TFP is only about 5 times higher. The main reason for the TFP gap between the two countries is the significant difference in labor productivity levels.