Is GNI (gross national income) a continuous variable?
Answers
Answer:
Gross National Income (GNI)
By THE INVESTOPEDIA TEAM
Reviewed by MARGUERITA CHENG
Fact checked by PETE RATHBURN on August 31, 2021
What Is Gross National Income (GNI)?
Gross National Income (GNI) is the total amount of money earned by a nation's people and businesses. It is used to measure and track a nation's wealth from year to year. The number includes the nation's gross domestic product (GDP) plus the income it receives from overseas sources.
The more widely known term GDP is an estimate of the total value of all goods and services produced within a nation for a set period, usually a year. GNI is an alternative to gross domestic product (GDP) as a means of measuring and tracking a nation's wealth and is considered a more accurate indicator for some nations. The U.S. Bureau of Economic Affairs (BEA) tracks the GDP to measure the health of the U.S. economy from year to year. The two numbers are not significantly different. Finally, there's gross national product (GNP), which is a broad measure of all economic activity.
KEY TAKEAWAYS
Gross national income (GNI) is an alternative to gross national product (GDP) as a measure of wealth. It calculates income instead of output.
GNI can be calculated by adding income from foreign sources to gross domestic product.
Nations that have substantial foreign direct investment, foreign corporate presence, or foreign aid will show a significant difference between GNI and GDP