|
Feature |
GDP |
GNP |
|
Definition |
GDP refers to the total value of goods and services produced within a country's borders in a given period of time. |
GNP refers to the total value of goods and services produced by a country's citizens, regardless of their location, in a given period of time. |
|
Components |
GDP includes only the value of final goods and services produced within a country's borders, regardless of who owns the factors of production. |
GNP includes the value of final goods and services produced by a country's citizens, whether they are located within the country or abroad. |
|
Ownership |
GDP does not take into account the ownership of the factors of production used to produce the goods and services. |
GNP takes into account the ownership of the factors of production used to produce the goods and services. |
|
Calculation |
GDP is calculated by adding up the value of all goods and services produced within a country in a given period of time. |
GNP is calculated by adding up the value of all goods and services produced by a country's citizens, regardless of their location, in a given period of time. |
|
Income |
GDP does not necessarily reflect the income earned by a country's citizens or residents. |
GNP reflects the income earned by a country's citizens or residents, regardless of where they are located. |
|
Exports |
GDP does not include the value of goods and services produced in a country and exported to other countries. |
GNP includes the value of goods and services produced by a country's citizens, whether they are located within the country or abroad. |
|
Imports |
GDP includes the value of goods and services produced abroad and consumed within a country's borders. |
GNP does not include the value of goods and services produced abroad and consumed within a country's borders. |
|
Growth |
GDP growth reflects the growth in a country's domestic economy. |
GNP growth reflects the growth in a country's overall economic output, including that produced by its citizens abroad. |
|
International Comparison |
GDP is often used for international comparison of economic performance. |
GNP is less commonly used for international comparison of economic performance. |
|
Exchange Rates |
GDP is usually calculated in the local currency, and then converted to a common currency for international comparison. |
GNP takes into account the currency earned by a country's citizens, whether they are located within the country or abroad. |
|
Multiplier Effect |
GDP multiplier effect takes into account only the value of the final goods and services produced within a country's borders. |
GNP multiplier effect takes into account the value of all goods and services produced by a country's citizens, whether they are located within the country or abroad. |
|
National Income |
GDP does not reflect the income earned by a country's citizens or residents, but only the income generated within its borders. |
GNP reflects the income earned by a country's citizens or residents, regardless of where they are located. |
|
Domestic Production |
GDP measures only the value of goods and services produced within a country's borders. |
GNP measures the value of goods and services produced by a country's citizens, regardless of their location. |
|
Migration |
GDP does not take into account the income earned by a country's citizens who have migrated abroad. |
GNP takes into account the income earned by a country's citizens who have migrated abroad. |
|
Foreign Investment |
GDP includes the value of goods and services produced by foreign-owned companies within a country's borders. |
GNP includes the value of goods and services produced by a country's citizens, whether they are located within the country or abroad. |
|
Economic Dependency |
GDP is a measure of a country's economic independence. |
GNP is a measure of a country |