To determine economic stabilityStates use a different concept. They all help to determine the changes and growth of the economy, as well as to suggest further options for development. This becomes a kind of characteristic of the country in the international arena, helping to establish relations with other countries.
So, what is included in the concept of "grossnational income "? This is nothing more than the sum of the total primary incomes that citizens of a particular country have received over a certain period of time. And this calculation applies both to residents within the country, and those who are abroad, but who have citizenship. In the latter case, only that part of the income that went to foreign countries is not considered.
Why do you need such a calculation?
The revenues of the state depend not only on the volumesproduction in the country, from the products and services offered, etc. It is necessary to take into account the total amount of funds earned by the inhabitants of the country. In this case, it is necessary to take into account the volume of funds received from abroad, as well as the part of the funds, which in turn was transferred to other states.
Gross national income depends on GDP(gross domestic product). But there are differences between them. They are expressed primarily in the fact that the gross domestic product (GDP) primarily reflects only the volume of production, its development, as well as various services that are produced or carried out by residents (residents) of a particular country.
While gross national income allowsdetermine the total amount of income of residents of the country, and, consequently, the entire state as a whole. This is the total flow of money that people in the country receive. Gross national income (GNI) is calculated as follows: to the gross domestic product (GDP), the difference between income received from abroad and paid to other countries is added.
What is the difference between GDP and GNI?
In this situation, it is not always clear what is the difference between these two concepts, and most importantly it is not clear why they are shared, because they are in many respects similar.
Nevertheless, there is a difference, the gross domestica product is what determines the goods and services produced within one country, i.e. it is expressed in the total value of all these goods and services. While gross income shows the total amount of money that citizens of this country earned. At the same time, they could work not only in their own country. Thus, the gross national income includes the residents' income from participation in the GDP of other countries.
In fact, this means that many companiescan provide their services abroad. There can also be established any production. The profit will be distributed among the countries, but some part will go to the country to which the company belongs, etc.
By the way, often GNI is called the gross nationalproduct (GNP). This is the same, until 1993 GNI was called a product and was calculated according to the same scheme. The changes were made due to the fact that the GNP reflected only the production indicators, while the gross national income reflects the total national income of all sectors of the economy.
For various countries of the world, GNI and GDP canto relate in different ways. As a rule, in developed countries, the national income is greater than GDP, since they can provide funds to developing countries, after which they receive interest for granted resources and have a part from production.
In Russia, GNI is still below GDP.In addition, if you subtract from GNI the use of fixed capital and the cost of depreciation, that you can get a net national income (NDP), which is also used in describing the country's economy.
