Essay: Gross national product

First, the GNP of a country can be calculated by the use of the expenditure, income and output approaches just like the Gross Domestic Product. According to Currie (pg 9), GNP is the total GDP of a country plus the overseas investments by the country’s citizens.

However, unlike GDP method that is restricted on location GNP is concerned with the ownership, in that,  in the calculation all the income of a country’s citizens are considered regardless of whether they are located domestically or  abroad. Additionally, unlike in GDP, the incomes of the non-citizens in the country are excluded. As a result due to the differences of the conditions of calculating, the GNP and GDP of a country differs, depending on the number of foreign investors in the country.

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