2.2.1. Net Factor Income from Abroad

Net Factor Income from Abroad ( NFIA) 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.

In short, Net Factor Income from Abroad = GNP – GDP.

Net foreign factor income in most of the countries is very small since factor payments earned by citizens and those paid to foreigners more or less offset each other.