k_PPP
See also
For a host country,
- GNI .. value of everything produced inside the host country + the income its residents (PR? [1]) receive—whether it is earned at home or repatriated from abroad. “Repatriated” usually includes wages and property income
- GDP measures economic output and income based on the location rather than nationality. GNP measures the output of host country’s residents regardless of the location of the actual underlying economic activity
- GNP starts with GDP, adds residents’ investment income [profits, dividends..] from overseas investments, and subtracts foreign residents’ investment income earned within the host country.
GDP measures overall size, in terms of productive output, of a national (or regional) economy, within a physical boundary
GNI measures income earned by the nationals regardless of location. A national may have spent 0 or 1 year in the “nationality country”
Those are the high-level concepts. The actual subtractions/additions are important but sometimes imprecise.
— Corporate income .. is a complicated calculation … not discussed in depth here
Income earned by a MNC in a host country, but repatriated home .. counts as GNP of the home only, but GDP of host country only.
Example: Ireland has received significant foreign investment. Therefore for Ireland, there is a net outflow of income through multinationals. Therefore, Irish GNP is lower than GDP.
I think GNI doesn’t count MNC income. GNI looks at individual shareholders of MNC, specifically their overseas property income.
— GNI has largely displaced the GNP concept . See also https://databank.worldbank.org/metadataglossary/world-development-indicators/series/NY.GNP.MKTP.KD.ZG
I guess the key differences is foreigners’ income locally spent. https://www.thebalance.com/gross-national-income-4020738 shows a concise table. It shows that
- A foreigner’s income is either locally spent or repatriated
- earned-n-spent amount by foreigners (in host country) is counted as GNI not GNP of host country
- remittance amount (back to home country) is counted as GNP/ GNI of the home country, and excluded from GNI/GNP of the employment country
- GNP is nationality-based and doesn’t care about where the income is spent
- GNI is more sophisticated, treating foreigners’ local spent income same as resident’s spent income
— [1] Do permanent residents count as a nationals of the host country? Minor question which doesn’t add real complexity.
However, I believe in theory every individual is counted as the national of one country. If an individual files tax returns in both SG and U.S., then the “systems” would not double-count the income and tax her twice.