Gross National Product (GNP)
Gross National Product (GNP) is a measure of the total value of all goods and services produced by a country in a given year. It is one of the most commonly used indicators of a country’s economic performance and is used to compare the economic output of different countries. GNP is calculated by adding up the value of all goods and services produced by a country’s citizens, regardless of where they are located. This includes both domestic and foreign production. GNP is often used as a measure of a country’s standard of living, as it reflects the total amount of goods and services available to its citizens.
History of GNP
The concept of GNP was first developed in the early 20th century by economist Simon Kuznets. Kuznets developed the concept as a way to measure the total output of a country, regardless of where it was produced. The concept was further refined in the 1950s by economist Robert Solow, who developed the concept of Gross Domestic Product (GDP). GDP measures the total output of a country within its borders, while GNP measures the total output of a country’s citizens, regardless of where they are located.
Comparison of GNP and GDP
| GNP | GDP |
|---|---|
| Measures total output of a country’s citizens, regardless of where they are located | Measures total output of a country within its borders |
| Includes both domestic and foreign production | Includes only domestic production |
Summary
Gross National Product (GNP) is a measure of the total value of all goods and services produced by a country in a given year. It is one of the most commonly used indicators of a country’s economic performance and is used to compare the economic output of different countries. GNP is calculated by adding up the value of all goods and services produced by a country’s citizens, regardless of where they are located. For more information about GNP, visit the websites of the World Bank, the International Monetary Fund, and the United Nations.
See Also
- Gross Domestic Product (GDP)
- National Income
- Net National Product (NNP)
- Gross Domestic Income (GDI)
- Gross National Income (GNI)
- Gross Value Added (GVA)
- Gross Fixed Capital Formation (GFCF)
- Gross Domestic Expenditure (GDE)
- Gross National Expenditure (GNE)
- Gross Domestic Savings (GDS)
