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'''Gross national product''' ('''GNP''') is a measure of the total [[market value]] of all final goods and services produced by a country's residents and businesses, regardless of where in the world they are located, over a given period of time. It differs from [[gross domestic product]] (GDP) in that GNP is defined by ownership (nationality) rather than geography.<ref name="oecd">OECD, "Gross National Product (GNP)".</ref>

'''GNP = GDP + Net income from abroad'''

Net income from abroad is the difference between income earned by a country's residents from foreign sources and income earned by foreign residents from within that country.<ref name="wiki">Wikipedia contributors, "Gross national income".</ref>

== Definition ==

Gross national product measures the output attributable to a nation's residents. Because it counts production by nationality, GNP includes the profits, dividends, and wages earned by a country's citizens and firms overseas, while excluding the income earned within the country by foreign-owned firms and workers.<ref name="oecd"/>

The closely related concept of '''gross national income''' (GNI), formerly called GNP, is defined as GDP plus net receipts of primary income from abroad. In practice, many statistical agencies now report GNI in place of GNP, and the two are often used interchangeably.<ref name="wiki"/>

== GNP versus GDP ==

{| class="wikitable"
! Concept
! Basis
! Description
|-
| [[Gross domestic product]] (GDP)
| Geography
| Output produced within a country's borders, regardless of ownership.
|-
| Gross national product (GNP)
| Ownership
| Output produced by a country's residents, regardless of location.
|}

GNP is the preferred measure for countries whose residents own substantial assets abroad, such as large capital-exporting nations, because it captures the income those assets generate. GDP is preferred for measuring the level of production and employment occurring inside a country.<ref name="wiki"/>

== See also ==

* [[Gross domestic product]]
* [[Gross national income]]
* [[Balance of payments]]
* [[Net national product]]

== References ==

<references />

[[Category:Economics]]
[[Category:Macroeconomics]]
[[Category:National accounts]]
[[Category:Economic indicators]]

Gross National Product - Revision history

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