Gross national product

 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 GDPEdit

{\displaystyle \mathrm {GNI} =\mathrm {GDP} +{\text{Money flowing from foreign countries}}-{\text{Money flowing to foreign countries}}}

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 China13,181,372-426,77913,556,853-51,29813,608,151
3 Japan5,226,599255,2765,155,423184,1004,971,323
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 France2,752,034-25,5012,840,07162,5362,777,535
7 India2,727,8939,1612,691,040-27,6922,718,732
8 Italy2,038,376-45,4882,106,52522,6612,083,864
9 Brazil1,902,28616,8041,832,170-53,3121,885,482
10 Canada1,665,565-47,7761,694,054-19,2871,713,341

GNI (Atlas method) nominalEdit

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 China10,096,966 China9,110,333 China7,934,721  China6,726,270  China5,752,320 China4,856,999 Japan4,835,553 Japan4,812,119  Japan4,931,413
3 Japan5,339,076 Japan5,899,905 Japan6,101,579  Japan5,775,633  Japan5,376,601 Japan4,797,984 China4,070,860 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 China3,283,519  China2,685,206
5 France2,844,284 France2,869,883 France2,824,713  France2,889,304  France2,847,703 France2,831,553 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 France2,800,864 France2,576,642  France2,414,820
7 Brazil2,429,720 Brazil2,486,874 Brazil2,432,061  Italy2,237,958  Italy2,234,508 Italy2,227,358 Italy2,222,143 Italy2,093,640  Italy1,989,288
8 Italy2,147,247 Italy2,130,760 Italy2,143,583  Brazil2,207,921  Brazil1,916,260 Brazil1,572,431 Spain1,490,975 Canada1,356,017  Spain1,241,641
9 India2,027,964 Russia1,981,791 India1,892,548  India1,755,712  India1,555,615 Spain1,519,339 Canada1,484,345 Spain1,353,031  Canada1,224,994
10 Russia1,930,634 India1,952,847 Russia1,823,299  Canada1,617,083  Canada1,511,465 Canada1,447,937 Brazil1,427,429 Brazil1,152,772  South Korea966,585
11 Canada1,785,099 Canada1,848,274 Canada1,773,264  Russia1,547,010  Spain1,496,363 India1,392,779 Russia1,368,593 India1,117,463  India941,326
12 Australia1,444,201 Australia1,514,269 Spain1,396,221  Spain1,455,758  Russia1,425,123 Russia1,318,495 India1,229,139 South Korea1,091,726  Mexico921,879
13 Spain1,366,027 Spain1,376,929 Australia1,359,417  South Korea1,125,787  South Korea1,053,302 South Korea1,037,381 South Korea1,118,647 Russia1,079,991  Brazil898,063
14 South Korea1,365,797 South Korea1,298,958 South Korea1,232,164  Australia1,119,902  Mexico1,026,316 Mexico988,663 Mexico1,074,555 Mexico1,000,700  Russia830,146
15 Mexico1,237,533 Mexico1,202,800 Mexico1,167,292  Mexico1,068,140  Australia1,025,186 Australia954,754 Australia900,062 Netherlands809,106  Netherlands753,205

GNI (Atlas method) PPPEdit

PPP – millions of international dollars (top 15)[4]

Rank2016201420132012201120102009200820072006
1 China21,366,057 China17,966,893 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 China16,418,959  China15,112,256  China13,680,536  China12,305,378  China11,017,654  China10,090,052  China8,991,462  China7,637,790
3 India8,594,226 India7,292,778 India6,699,996  India6,179,567  India5,794,517  India5,314,158  India4,783,856  Japan4,433,212  Japan4,408,333  Japan4,180,595
4 Japan5,443,842 Japan4,846,688 Japan4,844,841  Japan4,700,740  Japan4,522,723  Japan4,437,371  Japan4,192,471  India4,376,743  India4,138,987  India3,658,435
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 Brazil4,175,469 Brazil3,809,390 Brazil3,651,266  Brazil3,474,015  Brazil3,293,559  Brazil3,157,522  Brazil2,953,733  Brazil2,836,486  Brazil2,724,769  Brazil2,603,694
7 Russia3,305,725 Russia3,237,388 Russia3,108,506  Russia3,254,184  Russia3,124,400  Russia2,837,672  Russia2,678,150  Russia2,597,648  United Kingdom2,325,258  United Kingdom2,270,766
8 Indonesia2,929,424 France2,655,517 France2,625,346  France2,494,655  France2,495,100  France2,381,563  France2,291,855  United Kingdom2,343,012  France2,288,657  France2,094,160
9 France2,835,242 Indonesia2,592,315 United Kingdom2,483,802  United Kingdom2,394,758  United Kingdom2,343,934  United Kingdom2,281,280  United Kingdom2,272,667  France2,310,555  France2,224,097  Russia2,071,669
10 United Kingdom2,763,382 United Kingdom2,550,078 Indonesia2,436,810  Indonesia2,275,802  Italy2,124,755  Italy2,054,019  Italy2,016,501  Italy2,050,607  Italy1,971,909  Italy1,865,144
11 Italy2,316,529 Italy2,155,153 Italy2,148,502  Italy2,134,839  Indonesia2,106,961  Indonesia1,949,021  Indonesia1,798,541  Indonesia1,705,066  Indonesia1,568,263  Indonesia1,434,248
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 Turkey1,907,486 South Korea1,696,955 South Korea1,652,081  South Korea1,627,812  South Korea1,568,631  South Korea1,506,812  Spain1,492,658  Spain1,508,412  Spain1,447,718  Spain1,346,277
14 South Korea1,833,914 Canada1,576,495 Saudi Arabia1,549,822  Spain1,497,167  Spain1,494,181  Spain1,486,687  South Korea1,393,108  South Korea1,405,612  South Korea1,350,407  South Korea1,246,382
15 Saudi Arabia1,799,740 Spain1,556,600 Canada1,535,440  Saudi Arabia1,488,100  Canada1,401,447  Canada1,336,646  Canada1,279,702  Canada1,313,134  Canada1,271,027  Canada1,212,200

Gross national productEdit

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 GNPEdit

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 GDPEdit

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]

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 Metasyntactic variable, which is released under the 
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