Which One Is Better GDP Or GNP?

The difference between GDP and GNP is that while the former takes into account all the final goods produced in the domestic country whoever may produce these, the latter takes into account all the final goods produced by the domestic nationals wherever they may produce these. If we think in terms of capabilities of the people of a particular country, GNP is obviously better. But for the ease of calculation, countries are increasingly switching to GDP  measure in recent years.

Gross Domestic Product (GDP) and Gross National Product (GNP) are terms used in an attempt to measure national wealth.

The use of these measures determines variances of the wealth of the economy, especially in the areas of manufacturing, agriculture and the service industries of a country. Basically these terms represent how much money has been made in the economy over a specific number of months or a year or more.

GDP is the income from aboard subtracted from the income made by domestic companies from foreign companies, the result is the Gross Domestic Product.

GNP is based on per capita, which means the country's wealth is divided by the population of the country. The Gross National Product is not the best indicator of a country's wealth because it is less exact.

However, today there is movement toward a newer measure called Purchasing Power Parity (PPP).

The GDP is a good  measure for developing countries because it involves production taking in the country. Furthermore it is used for making caparisons between a country and the rest of the world more easily