GNP can be calculated using one of two methods. End use method (by cost). When calculating GNP Expenses sum up the expenses of all economic agents using GNP, households, firms, the state and foreigners (expenses on our exports). In fact we are talking about aggregate demand for produced GNP.
Total expenses can be broken down into several components:
GNP = C+ I+ G+NE,
Where C– consumption; I– investments; G – government procurement; NE– net exports.
Consumption is the totality of goods and services purchased by households.
Investments include the cost of goods purchased for future use. Investments are also divided into three groups: investments in fixed production assets; investment in housing construction; investment in inventories.
State procurements- this is the total cost of goods and services purchased by government agencies (military equipment, construction and maintenance of schools, roads, maintenance of the army and state administrative apparatus, etc.).
However, this is only part government expenditures included in the state budget. This does not include, for example, transfer payments such as social security payments and other benefits. Since these payments are made free of charge, they are taken into account as part of GNP.
Net exports reflects the results of trade with other countries, the difference in the value of exports and imports of goods and services. At equilibrium in the sphere foreign trade the value volumes of exports and imports are equal, and the value of net exports is zero; in this case GNP equal to the sum internal expenses: C+ I+ G.
If exports exceed imports, then the country acts as a “net exporter” on the world market, and GNP exceeds the volume of domestic expenditures.
If imports are greater than exports, then the country is a “net importer” on the world market, net exports are negative, and spending exceeds production.
This GNP equation is called basic macroeconomic identity.
Distribution method (by income)
When calculating GNP by income, all types of factor income are summed up, as well as depreciation charges and net indirect taxes on business, i.e. taxes minus subsidies. The following are usually distinguished as part of GNP: types of factor income(the criterion is the method of generating income):
– remuneration (wages, bonuses, etc.);
– income of owners (income of unincorporated enterprises, small shops, farms, partnerships, etc.);
– rental income;
– corporate profits (remaining after payment of labor and interest on the loan);
– net interest (as the difference between interest payments by firms to other sectors of the economy and interest payments received by firms from other sectors - households, the state, excluding interest payments on public debt).
As with other methods of counting, in in this case there is a connection between GDP and GNP indicators: GNP = GDP + net factor income from abroad. Net factor income from abroad is equal to the difference between the income received by citizens of a given country abroad and the income of foreigners received in the territory of a given country.
MINISTRY OF AGRICULTURE AND
FOOD OF THE RUSSIAN FEDERATION
FISHERIES DEPARTMENT
MURMANSK STATE
TECHNICAL UNIVERSITY
FACULTY OF CORRESPONDENCE
SOCIO-ECONOMIC EDUCATION
TEST
BY ECONOMIC THEORY
Date of submission of work to the dean's office: ________________
Murmansk
PLAN.
Calculation of GNP by two methods. System of National Accounts. 3
1. What is GNP. 3
2. Calculation of GNP by two methods 3
3. System of national accounts 5
-what is SNA 6
- SNA indicators 6
GNP is the most widely used measure of the performance of an economy producing goods and services. GNP estimates are analyzed to determine what Current state economy, as well as assess its prospects.
Gross national product is the market value of final goods and services produced using a country's domestic resources during a given period of time. GNP measures the value of production produced by factors of production owned by citizens of a given country, including in the territory of other countries.
GNP characterizes both the total expenditures and the total income in the economy.
-end use method (by cost)
When calculating GNP by expenses, the expenses of all economic agents using GNP, households, firms, the state and foreigners (expenses on our exports) are summed up. In fact, we are talking about the aggregate demand for produced GNP. Total expenses can be broken down into several components:
GNP = C + I + G +NE, where
C – consumption;
I – investments;
G – government procurement;
NE – net export.
Consumption is the totality of goods and services purchased by households. They are divided into three subgroups: non-durable goods, durable goods and services.
Non-durable goods include goods that last a short time, such as food and clothing.
Durable goods include goods that last more than 1 year: cars, furniture, Appliances and so on.
The subgroup of services includes everything that at the time of sale does not have the form of a material object: hairdressing salons and medical services, education, etc.
Investments include the cost of goods purchased for future use. Investments are also divided into three groups.
Investments in fixed production assets are the costs of firms for the acquisition of new production plants and equipment.
Investments in housing construction are the costs of purchasing new residential buildings, both for living and for renting.
Investment in inventories is an increase in the value of a company's inventory (if inventories are reduced, then the value of investment in inventories is negative).
Government procurement is the total cost of goods and services purchased by government agencies (military equipment, construction and maintenance of schools, roads, maintenance of the army and state administrative apparatus, etc.). However, this is only part of government spending that is included in the state budget. This does not include, for example, transfer payments such as social security payments and other benefits. Since these payments are made free of charge, they are taken into account as part of GNP.
Net exports reflect the results of trade with other countries, the difference in the value of exports and imports of goods and services.
At equilibrium in the sphere of foreign trade, the value volumes of exports and imports are equal, and the value of net exports is zero; in this case, GNP is equal to the sum of domestic expenditures: C + I + G.
If exports exceed imports, then the country acts as a “net exporter” on the world market, and GNP exceeds domestic spending.
If imports are greater than exports, then the country is a “net importer” on the world market, net exports are negative, and spending exceeds production.
This GNP equation is called the basic macroeconomic identity.
-distribution method (by income)
When calculating GNP by income, all types of factor income are summed up, as well as depreciation charges and net indirect taxes on business, i.e. taxes minus subsidies.
The following types of factor income are usually distinguished as part of GNP (the criterion is the method of generating income):
1) remuneration (wages, bonuses, etc.);
2) income of owners (income of unincorporated enterprises, small shops, farms, partnerships, etc.);
3) rental income, including imputed accrued rent owners of real estate, which they “pay” to themselves;
4) corporate profits (remaining after payment of labor and interest on the loan);
5) net interest (as the difference between interest payments by firms to other sectors of the economy and interest payments received by firms from other sectors - households, the state, excluding interest payments on public debt).
As with other calculation methods, in this case there is a connection between GDP and GNP indicators:
GNP = GDP + net factor income from abroad
Net factor income from abroad is equal to the difference between the income received by citizens of a given country abroad and the income of foreigners received in the territory of a given country.
-what is SNA
The system of national accounts is a balance of interrelated indicators characterizing the production, distribution, redistribution and final use of the final product and national income. The construction of the SNA is based on the concept of “economic circulation”, the core of which is economic turnover.
The national accounting system determines the quantitative values of the most important macroeconomic indicators. To do this, for each of the economic entities and national economy in general, a system of functional accounts is drawn up, reflecting the participation of a given entity in the following business processes:
Production material goods and services;
Income education;
Income distribution;
Income redistribution;
Use of income;
Change of property;
Lending and financing.
- SNA indicators
Although GNP is the most commonly used measure of total income, the SNA also uses other measures of income that differ from GNP in some components.
Net national product can be obtained from GNP by subtracting from it depreciation charges (the cost of depreciation of fixed capital):
NNP = GNP – a/o, where a/o – depreciation charges
NNP = C + NI + G + NE, where NI – net investment = I – a/o.
Indirect business taxes are the difference between prices. At which consumers buy goods and the selling prices of firms. These are VAT, excise taxes, import duties, taxes on monopoly activities, etc. If net indirect business taxes are subtracted from NNP, i.e. indirect taxes minus business subsidies, we obtain a national income indicator representing the total income of all residents of the country.
ND = NNP – c/n, where c/n are indirect taxes.
Personal income is obtained by subtracting social security contributions, retained corporate earnings, and corporate income taxes from national income and adding transfer payments. You must also subtract net interest and add personal income received as interest, including interest on the government debt. Personal Income PI.
Disposable personal income is calculated by reducing personal income by the amount of personal income tax and certain non-tax payments to the state.
DI = PI – T, where T – taxes.
Disposable personal income is used by the household for consumption and savings.
Consumption (C) – the most important and largest component GNP.
Savings (S) are defined as income minus consumption.
Gross national disposable income is obtained by summing GNP and net transfers from abroad (donations, donations, humanitarian aid, etc.) minus similar transfers transferred abroad. Gross national disposable income is used for final consumption and national saving.
1. Dornbusch R., Fischer S. “Macroeconomics” - Moscow: Moscow State University Publishing House “INFRA-M”, 1997.
2. Agapova T.A., Seregina S.F. “Macroeconomics” / edited by Sidorovich A.V. - Moscow: publishing house "DIS", 1997.
3. Sachs D.D., Larren F.B. "Macroeconomics. Global approach" - Moscow: Delo Publishing House, 1996.
4. Galperin V.M., Grebennikov P.I., Leussky A.I., Tarasevich L.S. “Macroeconomics” /edited by Tarasevich L.S. - St. Petersburg: Publishing House "Economic School", 1994.
5. Dolan E.J., Lindsay D.E. “Macroeconomics” - St. Petersburg: Litera Plus Publishing House, 1994.
6. Dornbusch R., Fischer S., Shmalenzi R. “Economics” - Moscow: Delo Publishing House, 1994.
7. Makyu N.G. “Macroeconomics” - Moscow: Moscow State University Publishing House, 1994.
To determine the state of economic well-being of a country, there is a significant amount various criteria, with the help of which macros are composed economic indicators countries. There are also those that relate to psychological, social and others. But in this article, only those that indicate the level of economic prosperity are of interest, or rather, two of them: gross domestic product and gross national product. AND main question: What is the difference between GDP and GNP? In most countries of the world, these indicators do not differ much from each other. But there is a difference between them, and within the framework of the article it is necessary to find out how much the values differ when calculating, why they are calculated and, finally, what is the meaning of these parameters, and what are these macroeconomic indicators in general.
What's happened
Gross domestic product refers to the total value of all produced material goods and services rendered that were provided and brought into a state of readiness for sale. Moreover, products made within the borders of a certain country are taken into account. This is the main difference between GDP and GNP. Counting is carried out in nominal banknotes. But conditions should be taken into account, because sometimes products can be included in GDP, and sometimes they cannot.
Example of calculating GDP
So, if there is a certain factory that produces semi-finished products and exports them abroad, then the total cost of semi-finished products produced by the enterprise will be added to the gross domestic product. But if the plant uses them in the future itself to manufacture more advanced and necessary products that will be exported, then the cost of the further product (the very final one, ready for external sales) will be added to the value of GDP. It should be said separately what real and nominal GDP/GNP are. By the second we mean available on this moment, while the first - what should be the result of dividing GNP by general level prices Quite confusing for a non-expert. The main difference that needs to be understood when studying GDP and GNP is the territorial aspect of the calculation.
What is gross national product
The gross national product is understood as the total value of material goods and services that were produced and provided by representatives of one people throughout the entire Earth. Compared to calculating gross domestic product, it is more labor-intensive and only gives a relative idea of the standard of living. It's all about use Money: so, if a person moved to another country and started business there, GNP takes into account the income that he brings to the state, but this income he brings to a completely different person, from whom his homeland does not receive direct taxes and investments in the economy. A bypass effect is possible when money earned abroad is transferred to the homeland, but even this option is not optimal from the point of view of using human potential. How GDP differs from GNP should already be clear at this stage; if not, you need to read the previous two paragraphs.
How is GDP calculated?
Gross domestic product for a certain year is calculated in this way: the market value of all products produced by a country is summed up in a certain monetary value, which is ready for sale and use abroad by the enterprise that produced it. Here we should digress and talk about the so-called positive shadow sector of the economy. Calculating the real gross national product of a country is very problematic.
Positive shadow GDP
Usually you can learn from TV screens, newspaper pages, on the radio, and on the Internet that the shadow sector is always bad. But only illiterate people can say that. Let's give an example: you have a garden of ten acres, and it was planted with potatoes, carrots, radishes, herbs and other crops. Time has passed, the time has come to harvest. Vegetables collected from plots do not openly contribute to the gross domestic product, therefore, technically, this is part of the shadow sector of the economy - the production of products without imposing taxes. But it is grown, as a rule, for one’s own consumption; it does not harm society, but can only reduce the profits of individual entrepreneurs. It is situations like this that make up the positive shadow sector of the economy. Why was this told? The point is that in different countries around the world there have been and, perhaps, there will be more attempts to determine the boundaries of this sector and add it to the gross domestic product (or gross national product), but so far, due to the impossibility of obtaining accurate data on the volume of work, such a calculation has not been carried out. Measurement of GDP and GNP is carried out in local currencies for “their” investors, and in US dollars for reporting data to international ones. Conversion is carried out at the official exchange rate.
How is GNP calculated?
The gross national product is calculated based on the data provided by people who have citizenship of a certain country, or, if there is a division into nations (provided for in passports), then on the basis of the income of representatives of one nation. This calculation technique is necessary to obtain information about the state of the state-forming masses as a reason for judging the state of affairs in the power itself.
Who calculates the gross domestic product?
GDP is calculated by two organizational forms: private and public. The tax and customs services and various statistics committees help the state collect the required information. The information they collect is quite accurate. But there are a number of pitfalls here that spoil government statistics. Among them: submission of false data by managers or owners of enterprises, deliberate falsification of data by the government or its subordinate structures. In world practice, it has been noted that owners of enterprises in capitalist countries have a tendency to reduce data, and increasing indicators is of interest to managers in countries with a significant public sector, such as in China, where scandals arise over and over again about enterprises overestimating their profitability and turnover indicators.
How do private structures count?
Private structures operate using other methods. They carry out calculations based on official data, but at the same time they check the data provided by other states on the amount of turnover, check with the data of banking institutions and other private structures that have access to the required type of information, and based on a comprehensive assessment they already make their own conclusions about the size of the gross domestic product and present their subjective judgments about the correspondence of government data to the real state of affairs. The calculation of GDP and GNP is carried out by them in order to provide additional confirmation of the financial capabilities of the power, as well as as an indicator of how trustworthy the country’s government can be from the point of view of a foreign investor.
Who calculates the gross national product?
GNP is calculated using almost the same methods as GDP, but the scale of action changes. Thus, if the gross domestic product is calculated for a certain territorial unit, then when calculating the gross national product it is necessary to take into account what is relevant to the people for whom the indicator is calculated.
The concepts of GDP and GNP are not very different for most countries, even when calculated by private entities. Although for some there are still differences, and they are huge. One of these states is Tajikistan, which receives 60% of its gross domestic product from the work of economic migrants. Thus, the gross national product of this country is a multiple of GDP.
Why is GDP calculated?
There are quite a few methods for calculating gross domestic product. Initially, the state wants to know the potential of the economy in order to be able to plan the further consistent development of the state formation. Also, a comparison of gross domestic product indicators allows you to view the progression and stability of its development. That is, data is provided by which potential investors will decide whether the country meets favorable indicators for them and whether it is worth investing in a project.
GDP is based on a number of other indicators that show the overall level of living comfort, a person’s ability to realize their talents, the level of social security and many other aspects of life. One such indicator is the Human Development Index. But even if things are going badly in a country, then calculating the gross domestic product has a certain meaning: it uniquely shows the level of openness in the country, and although in moments of decline it restrains investors’ investments and causes panic among them, when growth begins it can provoke those who invests money in assets that have reached the lower level of value, and, using the snowball principle, cause economic growth. GNP and GDP indicators are valuable precisely as indicators of a country’s level of development, indicators of possible potential that can be worked with and which can be developed, converting into profit.
Why is GNP calculated?
The main purpose, which should only be mentioned, is to find potential reserves. The fact is that migrants who have left the country and are conducting economic activities in the territory of another state can transfer money to their homeland. And ideally, having saved up some money, they can return home and start their own business, creating jobs and thereby revitalizing economic life. But the problem is that although they try to take everyone into account, a rather small number returns to their homeland, so it is impossible to consider the entire potential as usable. Usually in various models indicators from 20 to 80 percent are taken into account. Data is used to identify groups of people who are most likely to return.
And GNP are necessary for analyzing and assessing the economic situation of the state. A little about what it is.
Basic economic measures
Gross National Product (GNP) and Gross Domestic Product (GDP) are the main economic measures. They are necessary for understanding and analyzing the economic course of the state. One of the tasks of their accounting is to prevent crisis phenomena.
Gross national product is the sum of the final prices of goods produced both domestically and internationally. Methods for calculating GNP are different, but about them we'll talk below. To determine GDP, domestic production is taken into account.
For example, a plant producing brake discs for automobiles supplies its products to an automobile plant. They are installed on cars and sold, including the price of components in the cost of goods. The basic economic indicators are based on the amount from car sales. If our plant produces the same disks as spare parts for the market, then in this case the amount from sales goes into accounting for both GDP and GNP. This is done for the objectivity of economic indicators.
We hope that the concept of GDP, GNP has now become clearer. We will discuss methods for calculating these economic indicators below. 
Added value
IN Soviet publications economic theory This concept was called conditionally pure products. Methods for calculating GNP and GDP are based on this indicator.
Value added is the value created by a particular enterprise. This indicator is inextricably linked with determining cost. It is formed from wages, profits, depreciation and does not depend directly on external factors. Raw materials, delivery and other expenses that leave the enterprise are included in the cost of the goods. The amount that is formed in excess of it is the added value. 
Example of added value
A milk processing plant purchases raw materials from third-party suppliers and makes cheese from them. 1 kg of finished product requires 5 liters. The price is 30 rubles per liter of milk. Thus, the cost of 1 kg of cheese is 150 rubles. Taking into account electricity and transportation, this amount increased by 15 percent. Ultimately, the company pays about 180 rubles for the production of one kilogram of the finished product. This is the cost. Further, the price that comes on top of this amount is added value. This is not profit; it would be a mistake to identify them. Value added includes price increases for depreciation, labor, advertising, etc. Profit is the amount of income minus expenses. 
GNP: concept, calculation methods
Gross national product is not limited by territory, unlike GDP. Production can be located in any country in the world. The main thing is that the owners are tax residents of the state in which we want to find out the GNP. It is considered the main indicator of the well-being of society, although GDP speaks more about the healthy economic situation within the state.
Methods for calculating GNP should exclude so-called non-productive transactions. These are transfer transactions (benefits, pensions, expenses, etc.), transactions with securities. The purchase and sale of used items is also not taken into account. This is understandable, because it is impossible to objectively calculate the state of the economy if people sell the same product to each other. 
Cost calculation
Exist various methods calculating GNP. Cost accounting is one of them.
To objectively assess the economic indicator, all costs of producing a product are summed up. These include:
Personal consumption expenditures. They are divided into durable goods (electrical appliances, transport, etc.), current consumption goods (food, small industrial goods), as well as the purchase of services (medicine, education).
Internal investments of enterprises. Purchase of equipment, all types of construction work, as well as changes in inventories (the increase in inventories takes into account this method, a decrease, on the contrary, takes away).
State procurements. This does not include government transfers.
Net export. It is calculated using the formula export minus imports.
Method for calculating GNP by income stream
It is calculated as the previous method, only, on the contrary, it is not the amount of expenses that is taken into account, but the amount of income from the creation of final products and services.
Based on taking into account the following elements:
Deductions to cover depreciation. This is the purchase of equipment and other investment goods that have broken down or worn out during the production process.
Indirect taxes. These include sales taxes, excise taxes, licensing fees, customs duties, and property taxes.
Wage. It also includes contributions from entrepreneurs for social insurance, V Pension Fund etc.
Rent.
Interest.
Dividends.
Income taxes.
Income from individual investments.
Retained earnings of corporations.
Nominal and real economic indicators
GNP (the concept, methods for calculating real economic indicators and their difference from nominal ones) is especially relevant today in our country with a strong devaluation of the national currency. Real economic indicators are more objective and truthful. They are the ones who talk about the current state of affairs in the economy. Ratings simply give a numerical value. Most effective method– settlement in hard currency. For example, in dollars. GDP and GNP in our country are calculated in rubles. This is natural, since this particular currency is national. But with the devaluation of the ruble, economic indicators can greatly increase, while the real state of affairs may not change or, on the contrary, worsen. For example, the volume of all finished products was sold in a year worth a billion rubles. The growth in national currency was 30 percent. The nominal volume has increased. But if we translate into foreign currency and compare, then a fall occurred. Now the real level of development of the country is becoming more transparent.
Methods for calculating GNP
| Parameter name | Meaning |
| Article topic: | Methods for calculating GNP |
| Rubric (thematic category) | Production |
There are three ways to measure GNP (GDP):
a) by value added (production method);
b) by cost (end-use method);
c) by income (distribution method).
When calculating GNP (GDP) using the production method it is required to take into account all goods and services produced during the year only once, that is, so that the calculation takes into account final products and does not take into account intermediate products that can be bought and resold many times.
Final products- ϶ᴛᴏ goods and services that are purchased for final consumption and are not used for intermediate consumption (ᴛ.ᴇ. in the production of other goods and services).
Intermediate products – These are goods and services that are further processed or resold several times before reaching the final consumer.
If you sum up the goods and services produced in the country in all sectors of the economy, then multiple repeated calculations are inevitable, significantly distorting real volume gross product produced.
Accounting for the cost of the final product, as well as the costs of sales and resale of its various components in a multi-stage production process leads to the so-called double counting. To avoid multiple re-counting in the IRR, it is critical to include only the value created (added) at each intermediate stage of processing. Added value – this is the value created in the production process at a given enterprise (firm) and covers the real contribution of the enterprise to the creation of the value of a specific product͵ ᴛ.ᴇ. wages, profit and depreciation.
For this reason, the cost of consumed raw materials and supplies that were purchased from suppliers and in the creation of which the enterprise did not participate is not included in the added value of the product produced by this enterprise.
In other words, added value is the difference between the cost of products produced by a company and the amount paid to other companies for purchased raw materials, materials, etc. (that is, for intermediate products).
By adding up the added value created by all five firms in our example, we can accurately calculate the cost of the suit.
However, the value of GNP when calculated using the production method is the sum of added value of all manufacturing firms in the country. For the economy as a whole, the sum of all added value must be equal to the cost of final goods and services.
When calculating GNP based on expenses the expenses of all economic entities (households, firms, states) and foreigners (export expenses) for the acquisition (consumption) of the final product are summed up. In fact, we are talking about the aggregate demand of economic agents for produced GNP. Total costs can be broken down into four components:
GNP = C + J g + G + X n ,
Where WITH– personal consumer expenses, including household expenses on durable consumer goods (cars, refrigerators, furniture, etc.), on current consumption goods (bread, milk, cigarettes, shirts, etc.), as well as consumer expenses for services (lawyers, doctors, mechanics, hairdressers, etc.); J g– gross private domestic investment, which includes three components: 1) all final purchases of machinery, equipment and machine tools by entrepreneurs; 2) all construction (industrial and residential); 3) change in inventories (inventories of semi-finished products and raw materials not yet consumed in the production process of goods), while an increase in inventories is taken into account with a “+” sign, a decrease – with a “-” sign; G– government procurement of goods and services – all government expenditures (including federal and local authorities authorities) for the final products of enterprises and for all direct purchases of resources, especially work force(state administrative apparatus). This excludes all government transfer payments, since they do not reflect a real increase in current production. This is a payment government agencies, not related to the movement of goods and services. Transfers are the transfer of government revenues received from taxpayers to certain families and individuals in the form of pensions, benefits, scholarships, etc.); Xn– net exports of goods and services abroad, calculated as the difference between exports and imports. When calculating GNP, it is extremely important to take into account all expenses associated with the purchase of final goods and services produced in a given country, incl. and expenses of foreigners, ᴛ.ᴇ. the value of a given country's exports. At the same time, it is extremely important to exclude from the purchases of economic agents of a given country those goods and services that were produced abroad. import cost. The indicator must have both a “+” and a “-” sign.
Among the components of GNP, consumer spending is usually the largest (WITH), and the most volatile are investment expenses ( J g).
When calculating GNP based on income everything is summed up types of factor income, as well as two non-income components: depreciation charges and net indirect business taxes (taxes minus subsidies).
The following types of factor income are usually distinguished as part of GNP (the criterion is the method of generating income):
– remuneration for the work of employees (salary, bonuses, etc.);
– rent payments, which represent income received by property owners;
– interest, which represents payments of monetary income to suppliers of monetary capital;
– income from property or income from the unincorporated business sector (income from individually owned enterprises, partnerships and cooperatives);
– corporate profits, which can be used in three ways: 1) in the form of taxes on corporate profits – the state receives income; 2) in the form of dividends - corporate profits are paid to shareholders; 3) in the form of retained corporate profits (what remains from paying taxes and dividends), which are invested either immediately or in the future for the creation of new factories and the purchase of equipment.
Depreciation In the form of an accounting entry, there are annual allocations that show the amount of capital consumed in the course of production during certain years. Depreciation charges are called capital consumption charges, ᴛ.ᴇ. for the purchase of investment goods consumed in the process of producing GNP for a given year. Depreciation is not an addition to someone's income, it says that part of a given year's GDP must be set aside to replace in the future the machinery and equipment consumed in the production of final goods and services.
Indirect business taxes include general sales tax, excise taxes, property taxes, license fees and customs duties. This influx of indirect business taxes is unearned revenue since the government does not contribute anything in exchange for tax revenue.
As when calculating GNP by expenditure, in this method It is extremely important to also take into account factor income from abroad.
In this case, the calculation of GNP will take the form:
GNP = GDP + net factor income from abroad
Net factor income from abroad is equal to the difference between the income received by citizens of a given country abroad and the income of foreigners received in the territory of a given country.
Of the above methods for calculating GNP (GDP), the production method (based on value added) and the final use method of GNP (based on expenses) are most often used.
Methods for calculating GNP - concept and types. Classification and features of the category "Methods for calculating GNP" 2017, 2018.
