Gross National Income Information
Gross national income (GNI) comprises the total value 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.[1]
The GNI consists of: the personal consumption expenditures, the gross private investment, the government consumption expenditures, the net income from assets abroad (net income receipts), and the gross exports of goods and services, after deducting two components: the gross imports of goods and services, and the indirect business taxes. The GNI is similar to the gross national product (GNP), except that in measuring the GNP one does not deduct the indirect business taxes.
For example, the profits of a US-owned company operating in the UK will count towards US GNI and UK GDP, but will not count towards UK GNI or US GDP. Similarly, if a country becomes increasingly in debt, and spends large amounts of income servicing this debt this will be reflected in a decreased GNI but not a decreased GDP. Similarly, if a country sells off its resources to entities outside their country this will also be reflected over time in decreased GNI, but not decreased GDP. This would make the use of GDP more attractive for politicians in countries with increasing national debt and decreasing assets. GNP is also one of the few concepts which goes hand in hand with GDP, GNI, NNI.
See also
- Net national income
- Measures of national income and output
- Gross national income in the European Union
- List of countries by GNI per capita
- Low-Income Countries Under Stress (LICUS) (World Bank program)
- National average salary
References
- ^ Lequiller, François; Derek Blades (2006). Understanding National Accounts. OECD. pp. 18-19. ISBN 978-92-64-02566-0. http://books.google.co.uk/books?id=pXpJL6f8b3wC&printsec=frontcover&dq=%22Understanding+National+Accounts%22&source=bl&ots=_6_lHq-McY&sig=YqWljozkylpi4IFspFnjGwPicPw&hl=en&ei=4g7GTLT7OJCQjAfXiZ11&sa=X&oi=book_result&ct=result&resnum=5&ved=0CCMQ6AEwBA#v=onepage&q=%22To%20convert%20GDP%20into%20GNI%22&f=false.
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