Gross national income

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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) (all figures in millions of US dollars). 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.[1][2] While being conceptually identical, it is calculated differently.[3] GNI is the basis of calculation of the largest part of contributions to the budget of the European Union.[4] 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*.

Comparison of GNI and GDP[edit]

Comparison of GNI (Atlas method), GNI and GDP
2016 World Bank (millions of current US$)
No. Country GNI (Atlas method)[5] GNI[6] GDP[7]
value (a) a - GDP value (b) b - GDP
1  United States 18,357,322 -267,153 18,968,714 344,239 18,624,475
2  China 11,374,227 175,082 11,154,194 -44,951 11,199,145
3  Japan 4,816,892 -123,267 5,096,371 156,212 4,940,159
4  Germany 3,624,638 146,841 3,536,579 58,783 3,477,796
5  United Kingdom 2,778,488 130,590 2,587,657 -60,242 2,647,899
6  France 2,590,030 124,576 2,504,684 39,230 2,465,454
7  India 2,212,306 -51,486 2,235,524 -28,268 2,263,792
8  Italy 1,923,095 64,182 1,863,085 4,172 1,858,913
9  Brazil 1,835,993 39,806 1,758,527 -37,660 1,796,187
10  Canada 1,584,177 54,417 1,508,495 -21,265 1,529,760

GNI (Atlas method) nominal[edit]

Nominal, Atlas method – millions of current US$ (top 15)[1]

Rank 2014 2013 2012 2011 2010 2009 2008 2007 2006
1  United States 17,611,491  United States 17,001,290  United States 16,501,016  United States 15,727,291  United States 15,143,137  United States 14,740,580  United States 15,002,428  United States 14,651,211  United States 14,345,565
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  Germany 3,348,291  Germany 3,160,529
4  Germany 3,853,623  Germany 3,809,927  Germany 3,754,154  Germany 3,801,607  Germany 3,662,524  Germany 3,588,452  Germany 3,601,765  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 Kingdom 2,904,224  United Kingdom 2,835,805  United Kingdom 2,645,489
6  United Kingdom 2,801,499  United Kingdom 2,695,974  United Kingdom 2,612,525  United Kingdom 2,542,593  United Kingdom 2,540,957  United Kingdom 2,666,939  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  Canada 1,356,017  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  Canada 1,484,345  Spain 1,353,031  Canada 1,224,994
10  Russia 1,930,634  India 1,952,847  Russia 1,823,299  Canada 1,617,083  Canada 1,511,465  Canada 1,447,937  Brazil 1,427,429  Brazil 1,152,772  South Korea 966,585
11  Canada 1,785,099  Canada 1,848,274  Canada 1,773,264  Russia 1,547,010  Spain 1,496,363  India 1,392,779  Russia 1,368,593  India 1,117,463  India 941,326
12  Australia 1,444,201  Australia 1,514,269  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  Mexico 921,879
13  Spain 1,366,027  Spain 1,376,929  Australia 1,359,417  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  Australia 1,119,902  Mexico 1,026,316  Mexico 988,663  Mexico 1,074,555  Mexico 1,000,700  Russia 830,146
15  Mexico 1,237,533  Mexico 1,202,800  Mexico 1,167,292  Mexico 1,068,140  Australia 1,025,186  Australia 954,754  Australia 900,062  Netherlands 809,106  Netherlands 753,205

GNI (Atlas method) PPP[edit]

PPP – millions of international dollars (top 15)[2]

Rank 2016 2014 2013 2012 2011 2010 2009 2008 2007 2006
1  China 21,366,057  China 17,966,893  United States 17,091,162  United States 16,596,084  United States 15,802,898  United States 15,121,133  United States 14,494,460  United States 14,791,194  United States 14,585,723  United States 14,140,770
2  United States 18,749,688  United States 17,823,200  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  Germany 4,094,786  Germany 3,843,163  Germany 3,707,775  Germany 3,590,009  Germany 3,534,151  Germany 3,305,460  Germany 3,107,922  Germany 3,186,644  Germany 3,070,077  Germany 2,906,891
6  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 2,797,648  United Kingdom 2,325,258  United Kingdom 2,270,766
7  Brazil 3,075,469  Brazil 3,209,390  Brazil 3,081,266  Brazil 2,984,015  Brazil 2,923,559  Brazil 2,757,522  Brazil 2,453,733  Brazil 2,436,486  Russia 2,324,769  Brazil 2,103,694
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 Kingdom 2,343,012  Brazil 2,288,657  France 2,094,160
9  France 2,835,242  Indonesia 2,592,315  United Kingdom 2,483,802  United Kingdom 2,394,758  United Kingdom 2,343,934  United Kingdom 2,281,280  United Kingdom 2,272,667  France 2,310,555  France 2,224,097  Russia 2,071,669
10  United Kingdom 2,763,382  United Kingdom 2,550,078  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  Mexico 2,262,919  Mexico 2,111,206  Mexico 1,939,753  Mexico 1,941,682  Mexico 1,859,264  Mexico 1,710,132  Mexico 1,597,656  Mexico 1,611,372  Mexico 1,516,236  Mexico 1,432,295
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  Canada 1,576,495  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  Canada 1,535,440  Saudi Arabia 1,488,100  Canada 1,401,447  Canada 1,336,646  Canada 1,279,702  Canada 1,313,134  Canada 1,271,027  Canada 1,212,200

Gross national product[edit]

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".[8]

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.[9]

The term gross national income (GNI) has gradually replaced the Gross national product (GNP) in international statistics.[1][2] While being conceptually identical, the precise calculation method has evolved at the same time as the name change.[10]

Use of GNP[edit]

The United States used GNP as its primary measure of total economic activity until 1991, when it began to use GDP.[11] 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".[12] Many economists have questioned how meaningful GNP or GDP is 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.[13]

See also[edit]

References[edit]

  1. ^ a b c World Bank. "GNI, Atlas method". data.worldbank.org. Retrieved 2016-06-23.
  2. ^ a b c World Bank. "GNI, PPP (international $)". data.worldbank.org. Retrieved 2016-06-23.
  3. ^ "Glossary:Gross national income (GNI)". Eurostat statistic explained. Eurostat. Retrieved 2016-06-23.
  4. ^ "Monitoring GNI for own resource purposes". Eurostat statistic explained. Eurostat. Retrieved 2016-06-23.
  5. ^ "GNI, Atlas method (current US$)". World Bank.
  6. ^ "GNI (current US$)". World Bank.
  7. ^ "GDP (current US$)". World Bank.
  8. ^ Daly, Herman E. (1996), Beyond Growth. Beacon Press
  9. ^ "Flow of Funds Accounts of the United States" (PDF). Board of Governors of the Federal Reserve System. 17 September 2010. p. 9.
  10. ^ "Glossary:Gross national income (GNI)". Eurostat statistic explained. Eurostat. Retrieved 2016-06-23.
  11. ^ "BEA: Glossary "G"". Bureau of Economic Analysis. 5 September 2007.
  12. ^ "Gross Domestic Product as a Measure of U.S. Production" (PDF). August 1991.
  13. ^ "Beyond GDP". The Economist. ISSN 0013-0613. Retrieved 2016-07-27.