What is the difference between gni and gnp

The special case where consistency is equal to accuracy is when statistical data from multiple sources are compared together, and inconsistency in this case indicates that at least one data source is inaccurate Hongli and Hua Author: Xuguang Song.

Chapter number Chapter 8. The GNP does not distinguish between qualitative or quantitative improvements made to various products. In other words, the GNP does not take into account the value of product improvements and technological advances, nor does it consider the number of products that companies produce. When figuring the GNI, economists take into consideration both of these factors, including qualitative and quantitative improvement in the home country and abroad.

Please enter the following code:. Related Content. Principal Statistics. National Income and Expenditure Annual Results. Data on PXStat. This gives the formula:. The formula then becomes:. In many emerging markets , such as Mexico, residents move to other countries where they can earn a better living. Many workers that do this send money back to their families in their home county. There is enough of this type of income that it influences economic metrics.

To compare incomes among nations, it removes the effects of currency exchange rates by converting everything to the U. The problem with the PPP method, though, is that it converts all goods and services in a country to what it would cost in the United States. The method works well for products like McDonald's hamburgers that are sold across the world—but does a poor job of estimating the value of goods not sold in America.

GNI per capita is a measurement of income to the number of people in the country. However, GNI does not account for costs of living or subsistence levels—which means that while providing good information about the income levels of the people in a country, it should be used in context with other measurements to grasp a full picture of the income and purchasing power a country's citizens have. Bureau of Economic Analysis. Organization for Economic Co-Operation and Development.

International Monetary Fund. The World Bank. Actively scan device characteristics for identification.