Is there a word for GDP + imports?

Discussion in 'Economy' started by Norman, May 11, 2011.

  1. Norman
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    Norman Gold Member

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    Hello.

    Is there a indicator for GDP+ imports?

    Such indicator would measure the overall economic goods that country received in a year, unlike GDP which measures only those made within the country.

    I was thinking that GDI (income) would accomplish this, but turns out it is the same as GDP according to wikipedia.
     
    Last edited: May 11, 2011
  2. sparky
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    sparky VIP Member

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  3. pinqy
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    pinqy Gold Member

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    Why would you want to do that? That wouldn't tell you about the country's economy. In fact, imports are already included in the GDP, but as a negative: Consumption + Investment + Government + (Exports - Imports)
     
  4. expat_panama
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    expat_panama Silver Member

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    Some sources have GNP = GDP + exports - imports but most I've found go from formulas to long vague descriptions. I say call it the "Norman Product", publish a paper, win a Nobel Prize.
     
  5. editec
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    editec Mr. Forgot-it-All

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    Currently I'd call it GDD

    Gross Domestic Disaster
     
  6. pinqy
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    pinqy Gold Member

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    I think you're misreading. GDP or GNP are both Consumption + Investments + Government + Net Exports. The difference is that GDP is counting things inside the country, regardless of ownership, while GNP counts things in or out of the country owned by the country. In other words, GDP will include a Toyota plant in Tenessee but not a Ford plant in Canada, while GNP will count the Ford plant and not the Toyota plant.

    Imports and exports have nothing to do with it.
     
  7. expat_panama
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    expat_panama Silver Member

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    Wait a second, "Net Exports" is exports-imports.

    Googling keywords "gdp gnp exports imports" yields a number of links with the formula: GDP= consumption + investment + government expenditures + exports - imports, and it's not that hard to find a flow diagram like this--
    [​IMG]
    --but I still think Norman qualifies for a Nobel prize for economics, or at least a Peace Prize.
     
  8. pinqy
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    pinqy Gold Member

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    Yes, it is, as I had pointed out earlier in this thread. And it's part of both GDP and GNP....imports and exports have nothing to do with the differences between GDP and GNP.
     
  9. Norman
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    Norman Gold Member

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    I will remember to mention you. I forgot to take away the exports...

    I thought that GDI would be this but wikipedia says it's the same as GDP. Anyway GDP measures only what is produced in the country, not what is spent as whole. Of course, investment could also be taken away from this indicator, as the purpose is to measure just how much the country did spend in a year...

    so GDP - exports + imports - investment. I call it the well being indicator for now, may also call it the keynesian indicator or spending indicator hmm... USA is the master of this index lulz. Still there must be word for this kind of indicator.

    Pingy, net balance of trade is included in GDP to remove all the products the country receives and add the products country sends to overseas. Not to "include" them.

    We could also have a future wellbeing indicator. That would be investment + net balance of trade.
     
    Last edited: May 11, 2011
  10. expat_panama
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    expat_panama Silver Member

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    The flow diagram has GNP - exports + imports equal to Gross Domestic Purchases, whether that ends up being the same as the WBI depends on the nationalities of the purchasers.
     

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