International Comparison of Total Labor Productivity in China, America, Japan and South Korea—Measurement Based on the Nested World Input-Output Table

The existing world input-output tables are value-based input-output tables, not physical input-output tables. When conducting international comparisons, it is necessary to use purchasing power parity (PPP) as a conversion factor to compare productivity levels across countries. This paper calculates the PPPs for 16 industries in China, the U.S., Japan, and South Korea based on the 155 industries PPPs published by the ICP, and derives the price ratios for China-Japan, China-South Korea, and China-U.S. Furthermore, it transforms the total labor input for the 16 industries in China, the U.S., Japan, and South Korea, as calculated from the nested tables based on OECD's WIOD and Eora MRIO data, into real total labor input without price differences. This allows for a comparison of the total labor productivity levels across the four countries by industry. The results show that, overall, in 2011, the U.S. had a dominant position in total labor productivity among the four countries (China, the U.S., Japan, and South Korea). By industry, China's total labor productivity in secondary industries, such as food manufacturing, textile production, and electrical machinery manufacturing, lagged significantly behind that of the U.S., Japan, and South Korea, while the gap was smaller in transportation and communication services.