Is Net Domestic Product (NDP) different from Net National Product (NNP)? If yes or no please explain.

Question

Is Net Domestic Product (NDP) different from Net National Product (NNP)? If yes or no please explain.

Answer 1

The difference is international trade.

Answer 2

No. Net Domestic Product is another name for Net National Product.

If you are looking for the difference between Gross Domestic Product and Net Domestic Product:

NDP = GDP minus depreciation.

Answer 3

NDP and NNP are different (though sometimes they could be equal between each-other).

"Domestic" means that it includes everything produced within country (domestically) and it doesn't matter who have produced it - foreigners or residents.

"National" means that it includes everything that are produced by residents only (or by capital belonging to residents) - and it doesn't matter if it is produced domestically or internationally (for instance if I go to work into another country then my work should be included in national but not in domestic product).

"Net" means that depreciation of used in production capital (consumed capital) is deducted from Gross (for both domestic or national).

Answer 4

The total market value of all final goods and services produced by citizens of an economy during a given period of time, usually a year, after adjusting for the depreciation of capital. Net national product (NNP) has the same relation to net domestic product (NDP) as gross national product (GNP) has to gross domestic product (GDP). Net national product also has the same relation to gross national product that net domestic product has to gross domestic product. Like NDP, NNP is a measure of the net production in the economy.

The key difference between NNP and NDP is identical to that between GNP and GDP. Net national product measures all output produced by citizens of a nation, regardless of where that production takes place, and net domestic product measures all output produced within the political boundaries of a nation, regardless of the citizenry of those doing the producing. The difference between NNP and NDP is net foreign factor income.

In the same way that NDP is derived from GDP by subtracting capital depreciation, specifically the capital consumption adjustment (CCA), NNP is derived from GNP by subtracting the capital consumption adjustment.

NNP = GNP - CCA

When GNP gave way to GDP as the primary measure of gross production in the early 1990s, so too did NNP give way to NDP as the primary measure of net production in the economy. NNP can still be derived from the numbers provided by the Bureau of Economic Analysis, but it is seldom if ever reported with other standard measures of production and income.