Measuring Economic Growth from Outer Space

Jiaming Mao

Xiamen University

Jiaming Mao (Xiamen University) Measuring Economic Growth from Outer Space 1 / 14

Copyright © 2014–2018, by Jiaming Mao

This version: Fall 2018

Contact: jmao@xmu.edu.cn

Course homepage: jiamingmao.github.io/principles-of-economics

All materials are licensed under the Creative CommonsAttribution-NonCommercial 4.0 International License.

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Measuring Economic Growth Using Night Lights Intensity

GDP is often badly measured in many developing countries.

I weak government statistical infrastructureI large underground economy

One solution: use change in night lights intensity as a proxy for GDPgrowth. Combine satellite night lights data with official GDP statisticsto improve estimates of true economic growth.

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Measuring Economic Growth Using Night Lights Intensity

World

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Measuring Economic Growth Using Night Lights Intensity

East Asia

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Measuring Economic Growth Using Night Lights Intensity

Korean Peninsula. Source: Henderson et al. (2012)

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Measuring Economic Growth Using Night Lights Intensity

Asian Financial Crisis: Java, Indonesia. Source: Henderson et al. (2012)

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Measuring Economic Growth Using Night Lights Intensity

Genocide Event: Rwanda. Source: Henderson et al. (2012)

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Measuring Economic Growth Using Night Lights Intensity

Source: Henderson et al. (2012)

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Measuring Economic Growth Using Night Lights Intensity

Asian Financial Crisis: Java, Indonesia. Source: Henderson et al. (2012)

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Measuring Economic Growth Using Night Lights Intensity

Genocide Event: Rwanda. Source: Henderson et al. (2012)

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Measuring Economic Growth Using Night Lights Intensity

“WDI”: official real GDP growth rate data; “Fitted lights”: estimate based onnight lights data only; “Optimal combination of WDI and fitted lights”: estimate

by combining the two. Source: Henderson et al. (2012)Jiaming Mao (Xiamen University) Measuring Economic Growth from Outer Space 12 / 14

Measuring Economic Growth Using Night Lights Intensity

Source: Henderson et al. (2012)

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Reference

Henderson, J. V., A. Storeygard, and D. N. Weil. 2012. “MeasuringEconomic Growth from Outer Space,” American Economic Review,102(2).

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