Gross national income

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 the GNI and GDP shows whether a nation's resources are put to capital creation or declining toward abroad.

The gross national income has gradually replaced the gross national product in international statistics.[1][2] While being conceptually identical, it is calculated differently.[3]

Gross national income is the basis of calculation of the largest part of contributions to the budget of the European Union.[4]

Comparison of GNI and GDP

Comparison of GNI (Atlas method), GNI and GDP
2016 World Bank (millions of current US$)
No.CountryGNI (Atlas method)[5]GNI[6]GDP[7]
value (a)a - GDPvalue (b)b - GDP
1 United States18,357,322-267,15318,968,714344,23918,624,475
2 China11,374,227175,08211,154,194-44,95111,199,145
3 Japan4,816,892-123,2675,096,371156,2124,940,159
4 Germany3,624,638146,8413,536,57958,7833,477,796
5 United Kingdom2,778,488130,5902,587,657-60,2422,647,899
6 France2,590,030124,5762,504,68439,2302,465,454
7 India2,212,306-51,4862,235,524-28,2682,263,792
8 Italy1,923,09564,1821,863,0854,1721,858,913
9 Brazil1,835,99339,8061,758,527-37,6601,796,187
10 Canada1,584,17754,4171,508,495-21,2651,529,760

GNI (Atlas method) nominal

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

Rank 2014 2013 2012 2011 2010 2009 2008 2007 2006
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) PPP

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

Rank 2016 2014 2013 2012 2011 2010 2009 2008 2007 2006
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  Germany4,094,786  Germany3,843,163  Germany3,707,775  Germany3,590,009  Germany3,534,151  Germany3,305,460  Germany3,107,922  Germany3,186,644  Germany3,070,077  Germany2,906,891
6  Russia3,305,725  Russia3,237,388  Russia3,108,506  Russia3,254,184  Russia3,124,400  Russia2,837,672  Russia2,678,150  Russia2,797,648  United Kingdom2,325,258  United Kingdom2,270,766
7  Brazil3,075,469  Brazil3,209,390  Brazil3,081,266  Brazil2,984,015  Brazil2,923,559  Brazil2,757,522  Brazil2,453,733  Brazil2,436,486  Russia2,324,769  Brazil2,103,694
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  Brazil2,288,657  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 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".[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

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

References

  1. 1 2 3 World Bank. "GNI, Atlas method". data.worldbank.org. Retrieved 2016-06-23.
  2. 1 2 3 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.
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