What is the difference between GNI and GDP?

Question

If there is one, What is the difference between Gross National Income and Gross Domestic Product.

Thank you

Answer 1

GDP is part of GNI.

Gross National Income comprises the total value of goods and services produced within a country (i.e. its Gross Domestic Product), together with its income received from other countries (notably interest and dividends), less similar payments made to other countries.

For example, if a British-owned company operating in another country sends some of its income (profits) back to UK, the UK’s GNI is enhanced. Similarly, the repatriation of profit from a US-owned company operating in the UK will count towards US GNI, but not count towards UK GNI.

Answer 2

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RE:
What is the difference between GNI and GDP?
If there is one, What is the difference between Gross National Income and Gross Domestic Product.

Thank you

Answer 3

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GNP is Gross National Product which is all product produced domestically and internationally by a company based in that country. GNI is Gross National Income whish is essentially the same as GNP except business taxes (like from foreign countries) are deducted. GNI and GNP are domestic and foreign. GDP is for within the country or domestic products (not international)

Answer 4

The previous answers are incorrect. If the economy was closed to foreign trade and investment, then GNI and GDP would be the same.

However, suppose that a German firm has a factory in the US. Its profits from production would be part of US GDP, but they would not count as part of US GNI, because the firm's assets are not owned by Americans.

Similarly, suppose that a US firm has a factory in the Canada. Its profits from production would not be part of US GDP, because the production took place in another country. But, they would count as part of US GNI, because the firm's assets are owned by Americans, even though they are located abroad.

Answer 5

GNI and GDP are both variants of the concept of national income in economics. As you may be aware national income seeks to measure economic activity in an economy. There are 3 ways by which we capture national income, namely
1. The output approach
2. The expenditure approach and
3. The income approach.
The output approach seeks to add all final outputs in an economy to arrive at the national income. The expenditure approach adds all expenditures in the economy to arrive at the national income. Finally with the income approach, all incomes accruing to all factors of production are summed to get the national income.
Now gross national income refers to national income that is attributable to nationals of a country. This includes incomes earned abroad. On the other hand, gross domestic product is the income pertaining to the geographic boundaries of the country and so may include those that accrue to foreigners in the country.
It should by now be clear that to arrive at GNI we have to start from GDP. GDP is the sum of all incomes within the geographic territory of a country. We then subtract income that is attributable to foreigners. We then add incomes of nationals that have been earned abroad. This yields the GNI

Answer 6

Gni Definition

Answer 7

GDP - wealth produced by Zimbabwe (quantification of Zimbabwe's wealth entities' that are within Zimbabwe even if foreign owned)
GNP - wealth produced by Zimbabweans (exclusive quantification of the nationals' wealth entities only, where ever they are even if they are outside Zimbabwe )

Answer 8

What Is Gni