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?

  • 1
    $\begingroup$ (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 '20 at 9:14

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.