How the Philippine Gov. Measure Its Gdp and Gnp
Gross Domestic Product (GDP) and Gross National Product (GNP) are key figures in accessing the status of a country’s economy. These numbers are also used to gauge the competency of the administration in steering the economic wheels of the country.
Gross Domestic Product (GDP) is the total market value of a country’s output. It is the market value of all final goods and services produced within a given period of time by factors of production within a country.
Gross National Product (GNP) is the total market value of all final goods and services produced within a given period by factors of production owned by a country’s citizens, regardless of where the output is produced.
GNP vs. GDP
The gross national product (GNP) is defined as the total value of income earned by residents of a country regardless of where the income came from. GDP, on the other hand, is the total value of production realized by resident producers in an economic territory. In its simplest terms, GDP is the value of goods and services made in the Philippines while GNP is the value of goods and services made by Filipinos.
Vital to understanding these economic concepts is to look at the scope by which economic territory and residency are defined. For instance, the GDP measures output of economic activities within the economic territory of a country. There are areas inside the geographic jurisdiction of the country that are not part of the economic territory such as foreign embassies and offices like the Asian Development Bank (ADB) and the United Nations. At the same time, there are areas outside the country’s geographic territory that are part of its economic territory like the Philippine embassies located abroad.
The GNP, on the other hand, measures the total income of Filipino residents from all locations. The concept of residency is not equated to nationality. Filipinos who have migrated abroad and became residents of foreign countries
References: http://www.nscb.gov.ph/statseries/03/ss-200307-es2-01.asp Economic issue of the day, Vol. VI No.6 Philippine institute for developmental studies. http://dirp4.pids.gov.ph/ris/eid/pidseid0606.pdf Principles of Economics 8th Edition, Case+Fair. Pg.419 http://www.nscb.gov.ph/sna/2007/4thQ2007/Default.asp http://www.nscb.gov.ph/sna/2007/4thQ2007/2007gnpi4.asp http://www.nscb.gov.ph/sna/2007/4thQ2007/2007gnpe4.asp