How to explain that some countries’ gdp is greater than gnp, and some countries’ gdp is less than gnp

1. In some countries, the GDP is greater than the GNP, which means that the output value of foreign enterprises stationed in this country exceeds that of enterprises stationed abroad but affiliated with the country.

2. In some countries, the opposite is true when the GDP is less than the GNP, which means that the output value of foreign companies stationed in this country is less than that of companies stationed abroad but affiliated with the country.

GNP can better reflect a country’s real economic situation than GDP, because GDP is based on territorial principles. GDP includes the income generated by foreign companies in the country, and these incomes will eventually flow into foreign countries.

Gross national product is different from gross social output and national income:

First, the accounting scope is different. Both gross social output and national income only calculate the labor results of the material production department. , and the gross national product calculates the labor results of both the material production sector and the non-material production sector.

Second, the value composition is different. The total social output value calculates the full value of social products; the gross national product calculates the value added in the process of producing products and providing services, that is, added value, and does not include intermediate products and intermediate products. The value of labor input and national income do not include the value of intermediate products or the depreciation value of fixed assets, that is, only the net output value is calculated.

Extended information:

The difference in economic growth patterns caused by GDP and GNP (GNI)

American economist Samuelson believes that GDP is 20 One of the greatest inventions of the century. He compared GDP to a satellite cloud image describing the weather, which can provide a complete picture of economic conditions and help leaders determine whether the economy is shrinking or expanding, whether it needs stimulation or control, and whether it is in a severe recession or under the threat of inflation.

However, the call to change the extensive economic growth mode and expand domestic demand has also triggered a debate on whether economic policy should pursue GDP or GNP. The mainstream view is that pursuing GDP or GNP more in economic policy will lead to different economic growth models, namely endogenous economic growth model or imported economic growth model.

(1) If a country or region pays more attention to GDP in economic policy, it will pay more attention to the maturity and development of its own industries, regardless of whether domestic or foreign companies support the development of these industries. Of course, as GDP grows, the government will also have corresponding taxes.

If more attention is paid to GNP in economic policy, not only should the domestic industry develop, but also domestic enterprises should support the development of the domestic industry. Not only must taxes be increased, but also real profits must be made. Therefore, the former will be more interested in attracting investment and will regard investment promotion as the top priority of economic work, while the latter will attach importance to the development of domestic enterprises, including state-owned enterprises and private enterprises.

(2) Using GDP or GNP as the main goal of economic policy will lead to different levels of prosperity for the people of the country at a certain level of GDP. A typical case in this regard is the comparison between the new Southern Jiangsu model and the Wenzhou model. In 2004, as Suzhou's economy was booming, its total GDP surpassed Shenzhen's for the first time, and the new Southern Jiangsu model reached the commanding heights of China's economic development model.

But these cannot cover up the shortcomings of the new Southern Jiangsu model, which has been described as "only growing bones but not meat." Although GDP has increased and government revenue has increased, the people's pockets still cannot be filled. Most of the profits are taken away by foreign companies, while local people only get a little wages. In 2004, Suzhou's GDP was twice that of Wenzhou, but the per capita income of Suzhou people was half that of Wenzhou.

(3) Advocating GNP implies an endogenous growth model, and the source of power of the endogenous growth model (4.58, -0.02, -0.43%) comes from the private impulse to develop the economy.

The promotion of GDP is actually an imported growth model. Its source of power comes from the government. It is the local government that is driven by the development of the local economy, including performance assessment, to carry out large-scale growth under preferential conditions. Attract investment. The endogenous economic growth model is relatively solid, while the imported growth model is due to the profit-seeking nature of capital. If there are better investment areas, capital will flow away.

Baidu Encyclopedia-Gross Domestic Product

Baidu Encyclopedia-Gross Domestic Product