as long as the residents spend their income within the country. GNI has come to be preferred to GDP by organizations such as the World Bank. It also is used by the European Union to calculate the contributions of member nations.
Another problem with labels like “first world” and “third world” is that they’re overly simplistic. For example, the United States has long been considered part of the first world. Although it has a high GDP per capita, it also scores a relatively high 41.4 on the Gini index, a me...
GNP vs. GNI? Domestic (GDP) “Domestic” (in “Gross Domestic Product”) indicates that the inclusion criterion is geographical: goods and services counted are those produced within the country’s border, regardless of the nationality of the producer. For example, the production of a Japanese-...