Equilibrium Discrepancy between GDP (cas 146-91-8) and GNP in Poland

Add time:09/29/2019    Source:infona.pl

In this paper a theoretical approach, based on Cobb-Douglas production function, is used to assess the difference between the GDP (cas 146-91-8) and GNP values in Poland. The results suggest that in the long run GDP in Poland will be about 9.5% higher than GNP implying that the actual income levels enjoyed by Polish nationals will be lagging those implied by GDP by about three years. Furthermore, the author suggests that the actual consumption levels in Poland will be maximized in the long run when foreign capital is fully absent, and that consumption in Poland could be increased by about 4% when foreign ownership of capital is fully absent, thanks to the reduction in the domestic interest rate driven by higher saving rates.

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