Net Foreign Factor Income (NFFI). It is the difference between the aggregate amount that a country’s citizens and companies earn abroad, and the aggregate amount that foreign citizens and overseas companies earn in that country.
The NFFI's impact may not be be significant for most nations where income earned abroad offsets money paid to foreign nationals within the country. But it is significant for smaller nations who have substantial foreign investment and very few assets overseas. In this case, their GDP will be quite high compared to GNP.
In mathematical terms, NFFI = GNP - GDP.
The NFFI's impact may not be be significant for most nations where income earned abroad offsets money paid to foreign nationals within the country. But it is significant for smaller nations who have substantial foreign investment and very few assets overseas. In this case, their GDP will be quite high compared to GNP.
In mathematical terms, NFFI = GNP - GDP.
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