Factor Incomes from Abroad

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Factor Incomes from Abroad

The income a person or company derives from its operations in other countries. Factor incomes from abroad include foreign profits and remittances that workers send back to their home countries. See also: Factor Income.
References in periodicals archive ?
He added that net factor income from abroad has increased from Rs.
8 percent of GDP, mainly due to net factor income from abroad.
If the expected net factor income from abroad is added, the GNP growth rate would be even higher, meaning a steady increase in per capita income in the country, which if properly distributed through fair fiscal policy, could go a long ay in promoting welfare and changing the life patterns of a vast majority of the population.
Net factor income from abroad, which accounts for the difference between GNP and GDP, also surged 19.
Net Factor Income from Abroad [equivalent to] (Investment Income + Workers' Remittances Abroad + Other Private Transfers received by residents from abroad) - (Investment Income + Private Transfers made to nonresidents).
Gross National Product (at market prices) [equivalent to] Gross Domestic Product (at market prices) + Net Factor Income from Abroad .
Gross National Savings (taken as percent of GNP) [equivalent to] Gross Domestic Savings plus Net Factor Income from Abroad (as percent of GNP) .
Total Investment [equivalent to] Gross National Savings plus External Resource Minus Net Factor Income from Abroad .
Equation (iv), which shows the physical resources made available by foreign loans and grants, net factor income from abroad and other financial transactions including the use of reserves.
Now, during a time period when net factor income from abroad is not significant (as in Pakistan during the Fifties and Sixties), the external-resource balance can be taken as a fairly good indicator of the foreign loans and grants available to finance the excess imports over exports and this, together with domestic savings, finances total investment in the economy.
The important point to emphasize is that workers' remittances from overseas as part of the net factor income from abroad basically serves two primary purposes.
This was mainly on account of extraordinary increase in net factor income from abroad, which in turn, was the result of a sharp increase in the inflow of home remittances and foreign direct in investment.