F5 GDP accounting

2007-04-13 6:45 am
Some questions in past paper:

(I) 2002/25. the dividend received from shares in Hang Seng Bank by a Japanese person who lives in the US

(II) 2000/33. the interest paid to foreign investor holding Exchange Fund Bills

According to the answers given, (I) is counted in HK GDP while (II) isn't

Please explain the difference between the two^^
Is it possible to be the problem about Resident Producing Unit?

回答 (1)

2007-04-13 11:14 pm
✔ 最佳答案
Yes.
Since Hang Seng Bank is a local bank in Hong Kong, the dividend paid by Hang Seng Bank should be counted in Hong Kong GDP. However, Exchange Fund Bills is not actually a local producing unit in Hong Kong, so the interest rate paid will NOT be counted in Hong Kong GDP.

p.s. both case (I) and (II) will NOT be counted in Hong Kong GNP as well.


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