GNP vs. GDP

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ESP Educational Class

Mrs.ET Sopheak

Tel: 012289363 /0976469625

GDP vs. GNP

Gross Domestic Product (GDP) is the total value of final goods and service produced during a given period within the geographic boundaries of a country regardless of by whom. The goods and services are produced domestically.
GDP (Expenditure= Income) is calculated by 3 methods:

1. Expenditure approach: GDP= C + I + G + ( X- M)
2. Income approach: GDP= W + R + I +P + C + T + D + N
3. Output approach: GDP= Gross Value of Output- Value of Intermediate Consumption

C: Consumption
I: Investment
G: Government expenses
X: Export
M: Import
W: Wage or compensation of employees
R: Rent
I: Interest
P: Proprietor income
C: Corporate profit
T: Indirect business tax
D: Depreciation
N: Net factor income (Net domestic income)= Outflow- Inflow

Gross National Product (GNP) is the total value of final goods and services produced during a given period by the citizens of a country no matter where they live. The goods and services are produced by the "national" of the country.

GNP= GDP+ Net Inflow

Net Inflow (Net national income)= Inflow- Outflow

Thanks,
Mrs.ET Sopheak
Lecturer in Economics