Topic > Measuring gross national product in poor countries

Measuring gross national product in poor countriesCalculating gross national product (GNP), especially in poor countries, is largely a matter of guesswork and, even if it is accurate, the GNP itself may be an inadequate measure of well-being. Discuss this view of the problem of measuring and using GNP statistics. Introduction Gross National Product (GNP) is the term for the total market value of all final goods and services produced by a country's citizens. It is equal to gross domestic product (GDP) minus the net income of foreigners. For example, a Jamaican resident invested in America, it would still be valued as GNP and not GDP because gross domestic product (GDP) does not only deal with goods and services within a country's borders. Although GNP is used to measure economic growth, it is believed to equal the health of the economy and economic progress. GNP is used to evaluate whether it can truly reflect the economic well-being and growth of a country and especially in relation to poor countries. Since it is important for a country to grow and for the benefits of growth to reach all of society, concepts such as GNP and GDP arose to reflect the current state of the economy. However, economists have debated whether GNP is the true measure of well-being and growth, especially in poor countries. Gross National Product is essential as it highlights the well-being and development of society, it is also structured around the change in production and employment in terms of whether a shift from underdeveloped to developed occurs, as well as to indicate the improvement of some social indicators such as school and health conditions, which are also seen as a primary factor in measuring the development of societies. Economic growth refers to a nation's increasing ability to produce goods and services and to economic development, which also takes into account that the nation will be better off if it takes into account accounting changes in economic and social structure that will decrease or end poverty. Therefore quantitative data in terms of higher wage and higher production volume do not reflect the well-being of society, even though they may reflect high GNP. It has been argued that in less developed countries GNP cannot be considered to accurately represent the level of well-being. One of the arguments put forward was that there are different approaches with which one can arrive at NLP.