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29 March 2014
Gross national product (GNP)
GNP is the money value of final goods and services produced by the country’s factors of production wherever they are located during a given period of time, a quarter or a year. In other words, when the net factor incomes from abroad are added to GDP we get GNP. Thus,
GNP = GDP + net factor incomes from abroad
Thus, GNP = C + I + G + (X-M) + (R-P)
GNP (market price) = GNP (factor cost) + indirect taxes - subsidies.
GNP (factor cost) = GNP (market price) – indirect taxes + subsidies.