VI. Purchasing Power
PPP GNI (formerly PPP GNP) is gross national income (GNI) converted to international dollars
using purchasing power parity rates. An international dollar has the same purchasing power over GNI as a
U.S. dollar has in the United States. Gross national income is the sum of value added by all resident
producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts
of primary income (compensation of employees and property income) from abroad. Data are in current
international dollars. Data are taken from Worldbank and refers to year 2014 and are in million.
We believed that this variable has a positive relationship with Trade, because PPP should increase Trade.