Is remittance part of GNP ? Is it transfer payment ?
As per (Fundamentals of Macro Economy [Vivek Singh]) it is a transfer payment so not a part of GNP .
As per Ramesh singh It is part of GNP. Please clarify.
Source : Vivek Sir's Book
Factor income is basically the income earned by the four factors of production i.e. profit, rent,
interest and wages but it does not include the transfer incomes/payments. Hence GNP is the sum of GDP and factor income and it does not include transfer payments (free money) received from the rest of the world (for example remittances).
National Disposable Income = National Income + Transfer payments (free money)
National Disposable Income = National Income + Transfer payments (free money)
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