International comparison of TFP level based on TT index between China and Japan

The purpose of this paper is to develop the method of measuring output PPP and input PPP based on the TT index and the model measuring relative TFP levels between the countries based on both the bilateral translog production function and bilateral translog price function. The paper also reports the relative TFP level between China and Japan for the 1995 benchmark year by using the bilateral translog price function. Moreover, this study compares international competitiveness between 33 Chinese and Japanese industries.