“GDP-GNP Gap Trade-Off: Is it Significant for Economic Performance? Review of World Economies Having Both Gaps”

Abstract

This study directed toward identifying the comparative economic performance of countries having GDP>GNP Gap and GNP>GDP Gap. A total of 32 countries with GDP>GNP Gap and 24 countries with GNP>GDP Gap were identified and analyzed using twelve important economic indicators. The result shows that Countries with GDP>GNP Gap are doing comparatively well in employment, export, foreign reserve, GDP, import, per capita income, savings and trade investment. Countries with GNP>GDP Gap are leading in inflation and exchange rate. Although Countries with GDP>GNP Gap are leading the race but this study concludes that economic development can be ensured and sustained with these two types of gaps.