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The gross national income (GNI), previously known as gross national product (GNP), is the total amount of factor incomes earned by the residents of a country. it is equal to gross domestic product (GDP), plus factor incomes received from non-resident by residents, minus factor income paid by residents to non-resident.[2]: 44
In contrast to GDP, GNI is not a concept of value added, but a concept of income. GNI is the basis of calculation of the largest part of contributions to the Budget of the European Union.[3] In February 2017, Ireland's GDP became so distorted from the base erosion and profit shifting ("BEPS") tax planning tools of U.S. multinationals, that the Central Bank of Ireland replaced Irish GDP with a new metric, Irish Modified GNI (or "GNI*"). In 2017, Irish GDP was 162% of Irish Modified GNI.[4]
GNI contrast with net national income : GNI = NNI - Depreciation
The Atlas method can be applied to correct for fluctuating exchange rates.[5]
- ^ "World Bank's Income Groups". Our World in Data. Retrieved 8 October 2024.
- ^ Todaro, Michael P.; Smith, Stephen C. (2012). Economic development (11 ed.). Addison-Wesley. ISBN 978-0-13-801388-2.
- ^ "Monitoring GNI for own resource purposes". Eurostat Statistic Explained. Eurostat. Archived from the original on 2021-02-24. Retrieved 2016-06-23.
- ^ Heike Joebges (January 2017). "CRISIS RECOVERY IN A COUNTRY WITH A HIGH PRESENCE OF FOREIGN-OWNED COMPANIES: The Case of Ireland" (PDF). IMK Macroeconomic Policy Institute, Hans-Böckler-Stiftung.
- ^ "detailed methodology – World Bank Data Help Desk". The World Bank Atlas method. Retrieved 10 August 2024.