Gross Domestic ProductGross Domestic Product (GDP) is the measurement of the value of goods and services which are produced locally by a country during a particular period of time. In the calculation of GDP, the value of goods and services is adjusted to inflation. The change in GDP from a year to the following year is usually used as the measurement of economic growth.
The domestic production should be taken into consideration in the measurement of GDP. This is different with the Gross National Product (GNP), which measures the value of goods and services produced by the citizens of a country, including those who live abroad.
For an industrial country whose citizens mostly work abroad, its GDP will be lower than its GNP. Meanwhile, for a developing country whose citizens mostly work in the country and only a few of them who work abroad, its GDP will be higher than its GNP. Consequently, developing countries prefer using its GDP to its GNP as the measurement of its economic production.(zm-rs/da-tr)
(E)