Whose productivity leads the world in each industry?

Global industrial productivity and technological advancement are central to sustaining long-term economic growth and shaping international competitiveness. However, most existing studies emphasize total factor productivity (TFP) growth rather than sectoral TFP differences across major economies. Thus, this study measures and compares TFP across China, the United States, and the European Union in 27 industries from 1995 to 2017. The analysis applies the KLEMS framework in conjunction with the Törnqvist index to evaluate technological and efficiency variations among sectors and economies. Results indicate that the European Union maintains continuous leadership in sectors such as agriculture, basic metals, and industrial machinery, while the United States leads in food manufacturing, utilities, and trade. China shows a comparative advantage in financial intermediations. Several industries exhibit alternating leadership, reflecting dynamic global productivity competition. These findings reveal distinct technological and efficiency advantages across economies. The study recommends that industries with lower TFP should attract capital and advanced technology to enhance innovation and productivity, while high-performing industries should sustain their efficiency advantages through continuous innovation and strategic capital reallocation.