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I know the difference between GDP and GNP is that the former is confined to domestic borders and the latter to nationals across the world. I also know that FPI is shorter duration and more volatile than FDI.

I understand why FPI would be excluded from GDP. But why is FPI included in GNP? And why is FDI excluded from GNP?

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    $\begingroup$ (1) What was GNP is now called GNI. (2) In GNI, the foreign income includes the profits from direct investment and the dividends/coupons from portfolio investment $\endgroup$ – Henry Jul 14 at 9:14

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