Gross National Product (GNP)
is the market value of all products and services produced in one year by labor and property supplied by the residents of a country. Unlike Gross Domestic Product
(GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.
GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic growth".Daly, Herman E. (1996), Beyond Growth
. Beacon Press
GNP vs. GDP
Gross National Product (GNP) is often contrasted with Gross Domestic Product (GDP). While GNP measures the output generated by a country's enterprises - whether physically located domestically or abroad - GDP measures the total output produced within a country's borders - whether produced by that country's own firms or not.
When a country's capital or labor resources are employed outside its borders, or when a foreign firm is operating in its territory, GDP and GNP can produce different measures of total output. In 2009 for instance, the United States
estimated its GDP at $14.119 trillion, and its GNP at $14.265 trillion.
The United States
used GNP as its primary measure of total economic activity before 1991, when it began to use GDP. In making the... Read More