en.m.wikipedia.org
Gross national income
  (Redirected from Gross national product)
Not to be confused with Gross domestic product, Modified gross national income, or GNI*.
The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of Gross Domestic Product (GDP), plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents (Todaro & Smith, 2011: 44).[2] Comparing GNI to GDP shows the degree to which a nation's GDP represents domestic or international activity. GNI has gradually replaced GNP in international statistics.[3][4] While being conceptually identical, it is calculated differently.[5] GNI is the basis of calculation of the largest part of contributions to the budget of the European Union.[6] In February 2017, Ireland's GDP became so distorted from the base erosion and profit shifting ("BEPS") tax planning tools of U.S. multinationals, that the Central Bank of Ireland replaced Irish GDP with a new metric, Irish Modified GNI*. In 2017, Irish GDP was 162% of Irish Modified GNI*.[7]
World Bank's income groups as of 2016.[1]
Comparison of GNI and GDP
Comparison of GNI (Atlas method), GNI and GDP
2018 World Bank (millions of current US$)
No.CountryGNI (Atlas method)[8]GNI[9]GDP[10]
value (a)a - GDPvalue (b)b - GDP
1 United States20,636,31791,97420,837,347293,00420,544,343
2
 China
13,181,372-426,77913,556,853-51,29813,608,151
3
 Japan
5,226,599255,2765,155,423184,1004,971,323
4 Germany3,905,321-42,2994,058,030110,4103,947,620
5 United Kingdom2,777,405-77,8912,816,805-38,4912,855,296
6
 France
2,752,034-25,5012,840,07162,5362,777,535
7
 India
2,727,8939,1612,691,040-27,6922,718,732
8
 Italy
2,038,376-45,4882,106,52522,6612,083,864
9
 Brazil
1,902,28616,8041,832,170-53,3121,885,482
10 Canada1,665,565-47,7761,694,054-19,2871,713,341
GNI (Atlas method) nominal
Nominal, Atlas method – millions of current US$ (top 15)[3]
Rank201420132012201120102009200820072006
1 United States17,611,491 United States17,001,290 United States16,501,016 United States15,727,291 United States15,143,137 United States14,740,580 United States15,002,428 United States14,651,211 United States14,345,565
2
 China
10,096,966
 China
9,110,333
 China
7,934,721
 China
6,726,270
 China
5,752,320
 China
4,856,999
 Japan
4,835,553
 Japan
4,812,119
 Japan
4,931,413
3
 Japan
5,339,076
 Japan
5,899,905
 Japan
6,101,579
 Japan
5,775,633
 Japan
5,376,601
 Japan
4,797,984
 China
4,070,860 Germany3,348,291 Germany3,160,529
4 Germany3,853,623 Germany3,809,927 Germany3,754,154 Germany3,801,607 Germany3,662,524 Germany3,588,452 Germany3,601,765
 China
3,283,519
 China
2,685,206
5
 France
2,844,284
 France
2,869,883
 France
2,824,713
 France
2,889,304
 France
2,847,703
 France
2,831,553 United Kingdom2,904,224 United Kingdom2,835,805 United Kingdom2,645,489
6 United Kingdom2,801,499 United Kingdom2,695,974 United Kingdom2,612,525 United Kingdom2,542,593 United Kingdom2,540,957 United Kingdom2,666,939
 France
2,800,864
 France
2,576,642
 France
2,414,820
7
 Brazil
2,429,720
 Brazil
2,486,874
 Brazil
2,432,061
 Italy
2,237,958
 Italy
2,234,508
 Italy
2,227,358
 Italy
2,222,143
 Italy
2,093,640
 Italy
1,989,288
8
 Italy
2,147,247
 Italy
2,130,760
 Italy
2,143,583
 Brazil
2,207,921
 Brazil
1,916,260
 Brazil
1,572,431
 Spain
1,490,975 Canada1,356,017
 Spain
1,241,641
9
 India
2,027,964
 Russia
1,981,791
 India
1,892,548
 India
1,755,712
 India
1,555,615
 Spain
1,519,339 Canada1,484,345
 Spain
1,353,031 Canada1,224,994
10
 Russia
1,930,634
 India
1,952,847
 Russia
1,823,299 Canada1,617,083 Canada1,511,465 Canada1,447,937
 Brazil
1,427,429
 Brazil
1,152,772
 South Korea
966,585
11 Canada1,785,099 Canada1,848,274 Canada1,773,264
 Russia
1,547,010
 Spain
1,496,363
 India
1,392,779
 Russia
1,368,593
 India
1,117,463
 India
941,326
12 Australia1,444,201 Australia1,514,269
 Spain
1,396,221
 Spain
1,455,758
 Russia
1,425,123
 Russia
1,318,495
 India
1,229,139
 South Korea
1,091,726 Mexico921,879
13
 Spain
1,366,027
 Spain
1,376,929 Australia1,359,417
 South Korea
1,125,787
 South Korea
1,053,302
 South Korea
1,037,381
 South Korea
1,118,647
 Russia
1,079,991
 Brazil
898,063
14
 South Korea
1,365,797
 South Korea
1,298,958
 South Korea
1,232,164 Australia1,119,902 Mexico1,026,316 Mexico988,663 Mexico1,074,555 Mexico1,000,700
 Russia
830,146
15 Mexico1,237,533 Mexico1,202,800 Mexico1,167,292 Mexico1,068,140 Australia1,025,186 Australia954,754 Australia900,062
 Netherlands
809,106
 Netherlands
753,205
GNI (Atlas method) PPP
PPP – millions of international dollars (top 15)[4]
Rank2016201420132012201120102009200820072006
1
 China
21,366,057
 China
17,966,893 United States17,091,162 United States16,596,084 United States15,802,898 United States15,121,133 United States14,494,460 United States14,791,194 United States14,585,723 United States14,140,770
2 United States18,749,688 United States17,823,200
 China
16,418,959
 China
15,112,256
 China
13,680,536
 China
12,305,378
 China
11,017,654
 China
10,090,052
 China
8,991,462
 China
7,637,790
3
 India
8,594,226
 India
7,292,778
 India
6,699,996
 India
6,179,567
 India
5,794,517
 India
5,314,158
 India
4,783,856
 Japan
4,433,212
 Japan
4,408,333
 Japan
4,180,595
4
 Japan
5,443,842
 Japan
4,846,688
 Japan
4,844,841
 Japan
4,700,740
 Japan
4,522,723
 Japan
4,437,371
 Japan
4,192,471
 India
4,376,743
 India
4,138,987
 India
3,658,435
5 Germany4,394,786 Germany4,243,163 Germany4,097,775 Germany3,890,009 Germany3,634,151 Germany3,505,460 Germany3,407,922 Germany3,286,644 Germany3,170,077 Germany3,006,891
6
 Brazil
4,175,469
 Brazil
3,809,390
 Brazil
3,651,266
 Brazil
3,474,015
 Brazil
3,293,559
 Brazil
3,157,522
 Brazil
2,953,733
 Brazil
2,836,486
 Brazil
2,724,769
 Brazil
2,603,694
7
 Russia
3,305,725
 Russia
3,237,388
 Russia
3,108,506
 Russia
3,254,184
 Russia
3,124,400
 Russia
2,837,672
 Russia
2,678,150
 Russia
2,597,648 United Kingdom2,325,258 United Kingdom2,270,766
8
 Indonesia
2,929,424
 France
2,655,517
 France
2,625,346
 France
2,494,655
 France
2,495,100
 France
2,381,563
 France
2,291,855 United Kingdom2,343,012
 France
2,288,657
 France
2,094,160
9
 France
2,835,242
 Indonesia
2,592,315 United Kingdom2,483,802 United Kingdom2,394,758 United Kingdom2,343,934 United Kingdom2,281,280 United Kingdom2,272,667
 France
2,310,555
 France
2,224,097
 Russia
2,071,669
10 United Kingdom2,763,382 United Kingdom2,550,078
 Indonesia
2,436,810
 Indonesia
2,275,802
 Italy
2,124,755
 Italy
2,054,019
 Italy
2,016,501
 Italy
2,050,607
 Italy
1,971,909
 Italy
1,865,144
11
 Italy
2,316,529
 Italy
2,155,153
 Italy
2,148,502
 Italy
2,134,839
 Indonesia
2,106,961
 Indonesia
1,949,021
 Indonesia
1,798,541
 Indonesia
1,705,066
 Indonesia
1,568,263
 Indonesia
1,434,248
12 Mexico2,262,919 Mexico2,111,206 Mexico1,939,753 Mexico1,941,682 Mexico1,859,264 Mexico1,710,132 Mexico1,597,656 Mexico1,611,372 Mexico1,516,236 Mexico1,432,295
13
 Turkey
1,907,486
 South Korea
1,696,955
 South Korea
1,652,081
 South Korea
1,627,812
 South Korea
1,568,631
 South Korea
1,506,812
 Spain
1,492,658
 Spain
1,508,412
 Spain
1,447,718
 Spain
1,346,277
14
 South Korea
1,833,914 Canada1,576,495
 Saudi Arabia
1,549,822
 Spain
1,497,167
 Spain
1,494,181
 Spain
1,486,687
 South Korea
1,393,108
 South Korea
1,405,612
 South Korea
1,350,407
 South Korea
1,246,382
15
 Saudi Arabia
1,799,740
 Spain
1,556,600 Canada1,535,440
 Saudi Arabia
1,488,100 Canada1,401,447 Canada1,336,646 Canada1,279,702 Canada1,313,134 Canada1,271,027 Canada1,212,200
Gross national product
Gross national product (GNP) is the market value of all the goods and services produced in one year by labor and property supplied by the citizens of a country. Unlike gross domestic product (GDP), which defines production based on the geographical location of production, GNP indicates allocated production based on location of ownership. In fact it calculates income by the location of ownership and residence, and so its name is also the less ambiguous gross national income.
GNP is an economic statistic that is equal to GDP plus any income earned by residents from overseas investments minus income earned within the domestic economy by overseas residents.
GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic growth".[11]
When a country's capital or labour resources are employed outside its borders, or when a foreign firm is operating in its territory, GDP and GNP can produce different measures of total output. In 2009 for instance, the United States estimated its GDP at $14.119 trillion, and its GNP at $14.265 trillion.[12]
The term gross national income (GNI) has gradually replaced the Gross national product (GNP) in international statistics.[3][4] While being conceptually identical, the precise calculation method has evolved at the same time as the name change.[5]
Use of GNP
The United States used GNP as its primary measure of total economic activity until 1991, when it began to use GDP.[13] In making the switch, the Bureau of Economic Analysis (BEA) noted both that GDP provided an easier comparison of other measures of economic activity in the United States and that "virtually all other countries have already adopted GDP as their primary measure of production".[14] Many economists have questioned how meaningful GNP or GDP is as a measure of a nation's economic well-being, as it does not count most unpaid work and counts much economic activity that is unproductive or actually destructive.[15]
GNI vs GDP
While GDP measures the market value of all final goods and services produced in a given country, GNI measures income generated by the country's citizens, regardless of the geographic location of the income. In many states, those two figures are close, as the difference between income received by the country versus payments made to the rest of the world is not significant. According to the World Bank, the GNI of the US in 2016 was 1.5% higher than GDP.[16]
In developing countries, on the other hand, the difference might be significant due to a large amount of foreign aid and capital inflow. In 2016, the GNI [17] of Armenia was 4.45% higher than GDP.[18] Based on the OECD reports, in 2015 alone, Armenia has received a total of US$409 million development assistance. Over the past 25 years, USAID has provided more than one billion USD to improve the living of the people in Armenia. GNI equals GDP plus wages, salaries, and property income of the country's residents earned abroad that also constitutes the higher GNI figure. According to the UN report on migration from Armenia in 2015-17, every year around 15-20 thousand people leave Armenia permanently,[19] and roughly 47% of those are working migrants that leave the country to earn income and sustain the families left in Armenia. In 2016 Armenian residents received in a total of around $150 million remittances.[20]
See also
References
  1. ^ "World Bank's Income Groups". Our World in Data. Retrieved 5 March 2020.
  2. ^ Todaro, M. P., & Smith, S. C. (2011). Economic Development 11. Addison-Wesley, Pearson, ISBN, 10, 0-13.
  3. ^ a b c World Bank. "GNI, Atlas method". data.worldbank.org. Retrieved 2016-06-23.
  4. ^ a b c World Bank. "GNI, PPP (international $)". data.worldbank.org. Retrieved 2016-06-23.
  5. ^ a b "Glossary:Gross national income (GNI)". Eurostat Statistic Explained. Eurostat. Retrieved 2016-06-23.
  6. ^ "Monitoring GNI for own resource purposes". Eurostat Statistic Explained. Eurostat. Retrieved 2016-06-23.
  7. ^ Heike Joebges (January 2017). "CRISIS RECOVERY IN A COUNTRY WITH A HIGH PRESENCE OF FOREIGN-OWNED COMPANIES: The Case of Ireland" (PDF). IMK Macroeconomic Policy Institute, Hans-Böckler-Stiftung.
  8. ^ "GNI, Atlas method (current US$)". World Bank.
  9. ^ "GNI (current US$)". World Bank.
  10. ^ "GDP (current US$)". World Bank.
  11. ^ Daly, Herman E. (1996), Beyond Growth. Beacon Press
  12. ^ "Flow of Funds Accounts of the United States"(PDF). Board of Governors of the Federal Reserve System. 17 September 2010. p. 9. Archived from the original (PDF) on 8 December 2010. Retrieved 23 August 2018.
  13. ^ "BEA: Glossary "G"". Bureau of Economic Analysis. 5 September 2007.[permanent dead link]
  14. ^ "Gross Domestic Product as a Measure of U.S. Production" (PDF). August 1991.[permanent dead link]
  15. ^ "Beyond GDP". The Economist. ISSN 0013-0613. Retrieved 2016-07-27.
  16. ^ "BEA: The World Bank - US figures". the World Bank. 2017.
  17. ^ "BEA: Armenia GNP". Macrotrends. 2019.
  18. ^ "BEA: Armenia GDP". Macrotrends. 2019.
  19. ^ "BEA: Migration Rate and Associated Issues in Armenia in 2016-2017". UN Armenia. 2017.
  20. ^ "BEA: Inflow of Remittances by Balance of Payments". Central Bank of Armenia. 2019.
Last edited on 30 April 2021, at 19:23
Content is available under CC BY-SA 3.0 unless otherwise noted.
Privacy policy
Terms of Use
Desktop
HomeRandomNearbyLog inSettingsDonateAbout WikipediaDisclaimers
LanguageWatchEdit