To determine the state of economic prosperity of the country, there is a significant number of different criteria, with the help of which the country's macroeconomic indicators are. There are those that relate to psychological, social and other things. But in this article, interest is provided only by those that indicate the level of economic prosperity, or rather, two of them: gross domestic product and gross national product. And the main question: what is the difference between GDP GDP? In most countries of the world, these indicators are not very different from each other. But the difference between them exists, and it follows as part of the article to find out how much it is based on counting the value, why they are calculated and, finally, what's the point in these parameters, and that it is generally macroeconomic indicators.
What
Under the gross domestic product implies the overall value of all manufactured material goods and services rendered, which were provided and are provided in the state of readiness for implementation. Moreover, products made within the boundaries of a certain country are taken into account. This contains the main difference between GDP GDP. Counting is conducted in nominal monetary signs. But conditions should be taken into account, because sometimes products can be taken into account in GDP, and sometimes it is impossible.
Example of calculating GDP
So, if there is a certain plant that produces semi-finished products and exporting them abroad, then the total cost of semi-finished products produced by the enterprise will be flattened to the gross domestic product. But if the plant will use them in the future for the manufacture of more perfect and necessary products, which will be exported, then the value of the further product will be added to the GDP value (the final, ready-to-external implementation). It should be said separately about what is real and nominal GDP / GNP. Under the second, the existing currently implies, while the first one should be with the result of the division of the GNP on the overall price level. Quite confused for a non-specialist. The main difference that needs to be understood by studying GDP and GNP is in the territorial aspect of counting.
What is a gross national product
Under the gross national product, they understand the overall value of material goods and services that were produced and rendered by representatives of one people throughout the land. Compared to the counting of gross domestic product is more time consuming and gives only a relative view of the standard of living. All because of the use of funds: So, if a person moved to another country and took up the business there, the GNP takes into account the income that he brings the state, but this income brings a completely different, from which his homeland does not receive direct taxes and investments in the economy . It is possible bypass influence when the Mother will be transferred to the Money earned abroad, but even this option is not optimal in terms of the use of human potential. What is the difference between GDP from the GNP, at this stage it should already be clear if not - it is necessary to read two previous paragraphs.
How do GDP consider?
The gross domestic product for a certain year is considered to be in this way: the market value of the entire country produced in a certain monetary terms, which is ready to sell and use the enterprise, which has manufactured it. Here you should distract and tell about the so-called positive shadow sector of the economy. Calculate the real gross national product of the country is very problematic.
Positive shadow GDP
Usually from TV screens, newspaper pages, on the radio, on the Internet you can find out that the shadow sector is always bad. But so can only speak illiterate people. Let us give an example: you have a garden for ten hectares, and it was planted with potatoes, carrots, radius, greens and other agricultural crops. Time passed, it came to collect a harvest. Vegetables collected from the plots do not go into the open in the gross domestic product, therefore, purely technically, this is part of the shadow sector of the economy - production without applying products. But it is grown, as a rule, for its own use, does not harm society, but only can reduce the profits of individual entrepreneurs. Here is from such situations and consists of a positive shadow sector of the economy. What was it told for? The fact is that in different countries of the world were and, perhaps, there will be more attempts to identify the boundaries of this sector and to add it to the gross inner product (or gross national product), but so far due to the impossibility of obtaining accurate data about the volume of work Lead. The GDP and GNP measurement is carried out in local currencies for "their" investors, and in US dollars to submit data to international. Conversion is carried out at the official exchange rate.
What do GNP consider?
The gross national product is considered according to the data presented from people who have citizenship of a certain country, or if there is division on the nation (provided for in passports), then on the basis of revenues of representatives of one nation. This method of counting is necessary to obtain information on the state of state-forming masses as the cause of judgment on the state of affairs in the power itself.
Who considers gross domestic product?
GDP is calculated by two organizational forms: private and state. The state to collect the required information is helped by tax, customs services, various statistical committees. The information collected by them is quite accurate. But here there are a number of pitfalls that spoil state statistics. Among them: Submission of infant data by managers or enterprise owners, conscious falsification of these by the government or subordinate to it structures. In world practice, it is noted that the proposal to reduce data possess the owners of enterprises in capitalist countries, and increasing indicators are interested in management managers in countries with a significant public sector, as in China, where scandals are arising about overstateing the yield and turnover.
What do private structures say?
Private structures operate with other methods. They are calculated on the basis of official data, but at the same time the data provided by other states on the magnitude of the turnover are inspected with the data of banking institutions, other private structures, which have access to the information required type, and on the basis of a comprehensive assessment already make their own Conclusions about the magnitude of the gross domestic product and represent their subjective judgments on the compliance of the government's data to the real state of affairs. The calculation of GDP and the GNP is carried out by them in order to ensure additional confirmation of the financial capabilities of the Power, as well as as an indicator of how much it is possible to believe the country's government from the point of view of a foreign investor.
Who considers the gross national product?
The NGP count is carried out by almost the same methods as GDP, but the scale of action changes. So, if the gross domestic product is calculated for a specific territorial unit, then when counting the gross national product, it is necessary to take into account what is related to the people for which the indicator is considered.
The concept of GDP and GNP for most countries is not very varied, even when calculating private structures. Although for some, still differences exist, and they are huge. One of these states is Tajikistan, which 60% of its internal gross product is obtained by the work of economic migrants. Thus, the gross national product of this country has multiple exceeding GDP.
Why consider GDP?
The method of counting the gross domestic product is quite a lot. Initially, the state wants to know the potential of the economy in order to be able to plan further consistent development of state formation. Also, the comparison of the gross domestic product indicators allows you to view the progress and stability of its development. That is, data is provided for which potential investors will decide whether the country corresponds to the indicators favorable for them, and whether it is worth investing in some kind of project.
A number of other indicators are based on GDP, which show the overall level of life comfort, the possibility of implementing the person of their talents, the level of social security and many other aspects of life. One of these indicators is the human development index. But even if there are bad things in the country, and then counting the gross domestic product has a certain meaning: he pectures the level of openness in the country, and although at the moments of falling the investment attachments and causes panic among them, at the beginning of the growth, it can provoke those who can provoke those who Investing money into assets that have reached the bottom plank of value, and on the principle of snowball to cause an increase in economics. Indicators of GNP and GDP are valuable as indicators of the country's level of development, indicators of possible potential with which you can work and which can be developed by converting into profits.
Why are the GNP?
The main purpose that is only to mention is to find potential reserves. The fact is that migrants who left the limits of the country and conduct economic activities on the territory of another state, can translate money to their homeland. And ideally, filling cash, they can return home and open their own business, creating jobs and reviving economic life. But the problem is that although they try to take into account everyone, a rather small number is returned to their homeland, therefore it is impossible to consider the entire potential as suitable for use cannot be. Usually in various models, indicators are taken from 20 to 80 percent. The data is used to identify groups of people whose probability of which is the highest.
