Which indicator best shows which country can save the most money from a net salary after all monthly expenses? GNI PPP per capita or GDP PPP per capita? Or are there even better ones?
GDP and GNI are usually not significantly different. Think of GDP as domestic production only. Part of the income flows out of the country, while a portion of the income that is generated elsewhere flows into the country. GNI is the total income a country actually gets to keep, regardless of where it was earned.
Gross domestic product (GDP) is the value of a nation's finished domestic goods and services. Gross national product (GNP) measures the value of goods and services produced by only a country's citizens but both domestically and abroad. Gross national income (GNI) is closely related to GDP but includes the income a country receives from overseas sources. Thus, GNI calculates the total income earned by a nation's people and businesses, regardless of where it was earned. GNI can be much higher than GDP if a country receives a large amount of foreign aid for instance (and vice versa). GNI can be much lower than GDP if a large proportion of domestic production is owned by foreign investors. In short: GNP measures production by a country's citizens (even if the goods and services are produced abroad, and regardless of whether the income flows back to the country or is spent abroad), whereas GNI measures total income and therefore includes net income from overseas.
Thanks, bro. This really helped me a lot, your examples were really useful.
Glad to hear that!
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Which indicator best shows which country can save the most money from a net salary after all monthly expenses? GNI PPP per capita or GDP PPP per capita? Or are there even better ones?
That means GNI is more like GDP of a country right?
GDP and GNI are usually not significantly different. Think of GDP as domestic production only. Part of the income flows out of the country, while a portion of the income that is generated elsewhere flows into the country. GNI is the total income a country actually gets to keep, regardless of where it was earned.
Then What is the difference between GNP and GNI?
Gross domestic product (GDP) is the value of a nation's finished domestic goods and services.
Gross national product (GNP) measures the value of goods and services produced by only a country's citizens but both domestically and abroad.
Gross national income (GNI) is closely related to GDP but includes the income a country receives from overseas sources. Thus, GNI calculates the total income earned by a nation's people and businesses, regardless of where it was earned. GNI can be much higher than GDP if a country receives a large amount of foreign aid for instance (and vice versa). GNI can be much lower than GDP if a large proportion of domestic production is owned by foreign investors.
In short: GNP measures production by a country's citizens (even if the goods and services are produced abroad, and regardless of whether the income flows back to the country or is spent abroad), whereas GNI measures total income and therefore includes net income from overseas.
Totally GNI is the total income of the country !?
Yes
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Nah bro I just wanna get the GNI formula cuz this stupid economic book has no good explanations