Net Domestic Product (NDP)
Net Domestic Product (NDP) is a measure of the total value of goods and services produced in a country during a given period of time, minus the value of goods and services used up in the production process. It is a measure of the total economic output of a country, and is used to compare the economic performance of different countries. It is also used to measure the economic growth of a country over time.
History of NDP
Net Domestic Product (NDP) was first introduced in the 1950s as an alternative to Gross Domestic Product (GDP). GDP measures the total value of all goods and services produced in a country, but does not take into account the value of goods and services used up in the production process. NDP was developed to address this issue, and to provide a more accurate measure of a country’s economic output. Since then, NDP has become an important tool for measuring the economic performance of countries.
Comparison of GDP and NDP
| Measure | GDP | NDP |
|---|---|---|
| Definition | The total value of all goods and services produced in a country | The total value of all goods and services produced in a country, minus the value of goods and services used up in the production process |
| Uses | To measure the total economic output of a country | To measure the total economic output of a country, and to compare the economic performance of different countries |
Summary
Net Domestic Product (NDP) is a measure of the total value of goods and services produced in a country during a given period of time, minus the value of goods and services used up in the production process. It is a measure of the total economic output of a country, and is used to compare the economic performance of different countries. It is also used to measure the economic growth of a country over time. For more information about NDP, please visit the websites of the World Bank, the International Monetary Fund, and the United Nations.
See also
- Gross Domestic Product (GDP)
- Gross National Product (GNP)
- Net National Product (NNP)
- Gross National Income (GNI)
- Gross Value Added (GVA)
- Gross Output (GO)
- Gross Fixed Capital Formation (GFCF)
- Gross Domestic Expenditure (GDE)
- Gross Domestic Savings (GDS)
- Gross Domestic Investment (GDI)
