Measuring Quarterly Economic Growth from Outer Space
This paper presents a novel framework to estimate the elasticity between nighttime lights and quarterly economic activity. The relationship is identified by accounting for varying degrees of measurement errors in nighttime light data across countri...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/692011641480491613/Measuring-Quarterly-Economic-Growth-from-Outer-Space http://hdl.handle.net/10986/36814 |
| Summary: | This paper presents a novel framework
to estimate the elasticity between nighttime lights and
quarterly economic activity. The relationship is identified
by accounting for varying degrees of measurement errors in
nighttime light data across countries. The elasticity is
1.55 for emerging markets and developing economies, with
only small deviations across country groups and different
model specifications. The paper uses a light-adjusted
measure of quarterly economic activity to show that higher
levels of development, statistical capacity, and voice and
accountability are associated with more precise national
accounts data. The elasticity allows quantification of
subnational economic impacts. During the COVID-19 pandemic,
regions with higher levels of development and population
density experienced larger declines in economic activity. |
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