Gross domestic product and gross net product

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GDP vs GNP difference explained economics

Here is a clear breakdown of both concepts:

Gross Domestic Product (GDP)

Definition: The total market value of all finished goods and services produced within a country's borders during a specific time period (usually a quarter or year), regardless of who produces them.
  • A Toyota factory in the US contributes to US GDP
  • A US company's factory in Mexico does NOT contribute to US GDP

How GDP is Measured

Three approaches give the same result:
ApproachFormula
ExpenditureGDP = C + I + G + (X - M)
IncomeGDP = Wages + Rent + Interest + Profit
ProductionSum of value added at each production stage
Where:
  • C = Consumer spending
  • I = Business investment
  • G = Government spending
  • X - M = Exports minus Imports (net exports)

Types of GDP

  • Nominal GDP - Measured at current prices (not adjusted for inflation)
  • Real GDP - Adjusted for inflation; better for comparing growth over time
  • GDP per capita - GDP divided by population; measures living standards

Gross National Product (GNP)

Definition: The total market value of all goods and services produced by a country's residents/nationals, wherever they are located in the world.
  • A US citizen working and earning in Germany contributes to US GNP
  • A German citizen working in the US does NOT contribute to US GNP

The Key Formula Linking GDP and GNP

GNP = GDP + Net Factor Income from Abroad (NFIA)
Where:
  • NFIA = Factor income earned by residents abroad - Factor income earned by foreigners domestically
If NFIA is positive, GNP > GDP (country's nationals earn more abroad than foreigners earn domestically).

GDP vs. GNP - Side-by-Side Comparison

FeatureGDPGNP
FocusWhere production happensWho does the producing
ScopeWithin national bordersBy nationals, worldwide
Foreign workersIncludedExcluded
Nationals abroadExcludedIncluded
Primary useMeasuring economic output of a territoryMeasuring economic welfare of a nation's people
Usage todayMore widely used globallyStill used; US reports both

Practical Examples

  • India has a large diaspora sending remittances home - India's GNP tends to be higher than GDP because Indian nationals earn significant income abroad.
  • Luxembourg has many foreign workers - its GDP is higher than GNP because foreigners working there boost domestic production but take earnings home.

Related Concepts

  • Net National Product (NNP) = GNP - Depreciation (capital consumption)
  • Gross National Income (GNI) = essentially the modern equivalent of GNP; used by the World Bank to classify countries by income level
  • GDP Deflator = tool to convert nominal GDP to real GDP
The Investopedia GDP vs GNP explainer and Marketplace's breakdown are good supplementary reads.
In short: GDP = production where you are; GNP = production by who you are. Most countries and international organizations (IMF, World Bank) now prefer GDP as the standard measure, but GNP/GNI remains useful when analyzing the economic well-being of a country's citizens across borders.

According to park text book defintiotm

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Here are the exact definitions directly from Park's Textbook of Preventive and Social Medicine (under the chapter "Economic Levels - National Income"):

Definitions as per Park's Textbook

Gross National Income (GNI) / Gross National Product (GNP)

"Formerly known as GNP or Gross National Product. It is gross income generated from within the country as also net income received from abroad. It is expressed either 'at current prices' i.e., at prices prevailing during the period to which the figure refers, or 'at constant prices'; i.e., at prices prevailing during a fixed base period in the past, irrespective of the period to which the figures refers. Thus figures 'at constant prices' discount the effect of inflation after the base period and measure the changes in real terms."
  • Park also notes that for GNI per capita (US $), the national currency is converted using the World Bank Atlas Method - a 3-year average of exchange rates.

Gross Domestic Product (GDP)

"GDP is gross income generated within a country, i.e., it excludes net income received from abroad."

Net National Product (NNP)

"It is the GNP minus the capital we consume (e.g., equipment, machinery, etc.) in the production process. In other words, NNP is the market value of all final goods and services after providing for depreciation."

Net Domestic Product (NDP)

"It is the gross domestic product minus the value of depreciation on fixed assets."

Additional Definitions from Park

TermPark's Definition
GDP at Market PriceGDP at factor cost + indirect taxes - subsidies
NNP at Market PriceNNP at factor cost + indirect taxes - subsidies
GNP at Market PriceGNP at factor cost + indirect taxes - subsidies

Park's Context Note

Park further states:
"These aggregates measure the total volume of national economic activity at current or constant price. By dividing the GNP or GDP by the total population, one arrives at per capita GNP or GDP, which are common general purpose indicators of national wealth. Per capita GNP may thus serve as a general measure of human welfare - that is, of health in a very broad sense."

Note on terminology: Park uses the term "Gross Net Product" is not a standard term - Park's textbook uses GNP (Gross National Product), now officially renamed GNI (Gross National Income) by the World Bank. The "net" equivalents are NNP (national) and NDP (domestic), which subtract depreciation from their gross counterparts.
  • Park's Textbook of Preventive and Social Medicine, Chapter: Economic Levels - National Income

Create a summary comparison table of GDP vs GNP with Park's definitions

Here is a summary comparison table based directly on Park's Textbook of Preventive and Social Medicine:

GDP vs GNP/GNI - Summary Comparison Table

As per Park's Textbook of Preventive and Social Medicine

FeatureGDP (Gross Domestic Product)GNP / GNI (Gross National Product / Gross National Income)
Park's Definition"Gross income generated within a country""Gross income generated from within the country as also net income received from abroad"
Income from abroadExcludedIncluded
ScopeWithin the country's borders onlyWithin the country + net foreign income
Modern nameGDP (unchanged)Now called GNI (formerly GNP) - per World Bank
ExpressionAt current prices or constant pricesAt current prices or constant prices
Inflation adjustmentFigures at constant prices discount inflationFigures at constant prices discount inflation
Per capita formPer capita GDP - indicator of national wealthPer capita GNI (US $) - converted via World Bank Atlas Method (3-year average exchange rate)
Net equivalentNDP = GDP - depreciation on fixed assetsNNP = GNP - capital consumed in production (depreciation)
At market priceGDP at factor cost + indirect taxes - subsidiesGNP at factor cost + indirect taxes - subsidies
Use in healthCorrelated with many health variablesPer capita GNP/GDP = "general measure of human welfare - that is, of health in a very broad sense"

Key Relationship (from Park)

GNI (GNP) = GDP + Net income received from abroad

NDP = GDP - Depreciation on fixed assets
NNP = GNP - Capital consumed in production

Park's Health Context

Park places these definitions under "Economic Levels" in the chapter on social determinants of health, noting:
"Countries with a high per capita GNP are predominantly industrially developed, while those with a low one are predominantly agricultural, or developing."
This table is entirely sourced from:
  • Park's Textbook of Preventive and Social Medicine - Chapter: Economic Levels, National Income section

First referral units according to park text

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I now have all the content needed. Here is the complete answer directly from Park's textbook:

First Referral Units (FRU) - As per Park's Textbook of Preventive and Social Medicine


What is an FRU?

A First Referral Unit (FRU) is a health facility (typically a Community Health Centre / CHC at the sub-district level) operationalized to provide emergency and essential obstetric care (EmOC). It serves as the first point of referral from Primary Health Centres (PHCs).
"It has been decided that all the First Referral Units be made operational for providing emergency and essential obstetric care during the second phase of RCH."

Minimum Services of a Fully Functional FRU

  1. 24-hour delivery services including normal and assisted deliveries
  2. Emergency obstetric care including surgical interventions like caesarean sections
  3. New-born care
  4. Emergency care of sick children
  5. Full range of family planning services including laparoscopic services
  6. Safe abortion services
  7. Treatment of STI/RTI
  8. Blood storage facility
  9. Essential laboratory services
  10. Referral (transport) services

3 Critical Determinants for a Facility to be "Declared" as an FRU

Park specifically states:
"There are three critical determinants of a facility being 'declared' as a FRU. They are: availability of surgical interventions, new-born care and blood storage facility on a 24-hour basis."
#Critical Determinant
1Surgical interventions (24 hours)
2New-born care (24 hours)
3Blood storage facility (24 hours)

Physical Requirements to Perform Full Range of FRU Functions

RequirementDetails
Bed strengthMinimum 20-30 beds (relaxable to 10-12 in difficult/NE/EAG states)
Operation theatreFully functional
Labour roomFully functional
Newborn care areaEarmarked and equipped in labour room and ward
LaboratoryFunctional
Blood storagePresent
Utilities24-hour water supply and electricity
Waste disposalArrangements in place
TransportAmbulance facility

FRU and CHC Relationship

  • The CHC (Community Health Centre) functions as the FRU at the sub-district level
  • CHC is manned by 4 medical specialists (surgeon, physician, gynaecologist, paediatrician) + 21 paramedical staff
  • Has 30 indoor beds, one OT, X-ray, labour room, and laboratory
  • Serves as referral centre for 4 PHCs
  • As of March 2018: 5,624 CHCs functional in India

Strategic Importance (RCH-II)

"The operationalisation of First Referral Unit at sub-district/CHC level for providing EmOC to pregnant women is a crucial strategy of RCH-II, which needs focussed attention."
  • Park's Textbook of Preventive and Social Medicine - Chapter: Reproductive and Child Health (RCH), Emergency Obstetric Care section

It is present in which page number

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There is no <!-- page: --> marker before the FRU section, which means it begins right at the start of block 7. The block metadata confirms:

Page Number

The First Referral Unit (FRU) content - under the heading "Emergency Obstetric Care" - is found at:
Page 514 of Park's Textbook of Preventive and Social Medicine
This is the opening page of Block 7 (pages 514-596), and the FRU section starts immediately at the beginning of that block with no preceding page break marker, confirming it begins on page 514.
The content covers:
  • Page 514 - Definition, minimum services of FRU (10 points), 3 critical determinants, and physical facility requirements
  • Continued in the same chapter under the Reproductive and Child Health (RCH) section
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