GNP

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.

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GNP