The older compilation is called the Jerusalem Talmud or the Talmud Yerushalmi. It was compiled sometime during the fourth century in Palestine. The Babylonian Talmud was compiled about the year 500 C.E., although it continued to be edited later
There are significant differences between the two Talmud compilations. The language of the Jerusalem Talmud is primarily a western Aramaic dialect which differs from that of the Babylonian. The Talmud Yerushalmi is also often fragmentary and difficult to read, even for experienced Talmudists. The redaction of the Talmud Bavli, on the other hand, is more careful and precise.
In the Bavli, however, Gemara exists only for 37 out of the 63 tractates of the Mishnah. Many agricultural ritual purity laws having to do with the Temple had little practical relevance in Babylonia and were therefore not included. The Yerushalmi, though, covers a number of these chapters.
The influence of the Babylonian Talmud has been far greater than that of the Yerushalmi. This is mainly because the influence and prestige of the Jewish community of Palestine steadily declined in contrast with the Babylonian community in the years after the redaction of the Talmud, as Jews in the Islamic lands received much better treatment than they did in the later Christian Empire.