Modified_gross_national_income | TriviaQuestions.online

⭐ In the context of Gross National Income, Modified Gross National Income (Modified GNI) is specifically designed to address what type of economic concern?

Ireland adopted Modified GNI as a more accurate economic indicator because its traditional GDP was significantly inflated by the tax planning strategies of large U.S. multinational corporations.

⭐ Core Definition: Modified gross national income

Modified gross national income (also Modified GNI or GNI*) is a metric used by the Central Statistics Office (Ireland) to measure the Irish economy rather than GNI or GDP. GNI* is GNI minus the depreciation on Intellectual Property, depreciation on leased aircraft and the net factor income of redomiciled PLCs.

While "Inflated GDP-per-capita" due to base erosion and profit shifting (BEPS) tools is a feature of tax havens, Ireland was the first to adjust its GDP metrics. Economists, including Eurostat, noted Irish Modified GNI (GNI*) is still distorted by Irish BEPS tools and US multinational tax planning activities in Ireland (e.g. contract manufacturing); and that Irish BEPS tools distort aggregate EU-28 data, and the EU-US trade deficit.

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👉 Modified gross national income in the context of Gross national income

The gross national income (GNI), previously known as gross national product (GNP), is the total amount of factor incomes earned by the residents of a country. It is equal to gross domestic product (GDP), plus factor incomes received from non-resident by residents, minus factor income paid by residents to non-resident.

In contrast to GDP, GNI is not a concept of value added, but a concept of income. GNI is the basis of calculation of the largest part of contributions to the Budget of the European Union. In February 2017, Ireland's GDP became so distorted from the base erosion and profit shifting ("BEPS") tax planning tools of U.S. multinationals, that the Central Bank of Ireland replaced Irish GDP with a new metric, Irish Modified GNI (or "GNI*"). In 2017, Irish GDP was 127% of Irish GNI and 162% of Irish Modified GNI.

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