Measuring Economic Growth from Outer Space

Henderson, J. Vernon; Storeygard, Adam; Weil, David N

doi:10.1257/aer.102.2.994

Cited by 2,596Impact of Light on Environment and HealthEconomic Growth and ProductivityEconomic Growth and Development

Measuring Economic Growth from Outer Space

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Henderson, J. Vernon, Storeygard, Adam, Weil, David N·2012·American Economic Review

DOI 10.1257/aer.102.2.994PMC PMC4108272

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Abstract

We develop a statistical framework to use satellite data on night lights to augment official income growth measures. For countries with poor national income accounts, the optimal estimate of growth is a composite with roughly equal weights on conventionally measured growth and growth predicted from lights. Our estimates differ from official data by up to three percentage points annually. Using lights, empirical analyses of growth need no longer use countries as the unit of analysis; we can measure growth for sub- and supranational regions. We show, for example, that coastal areas in sub-Saharan Africa are growing slower than the hinterland. (JEL E01, E23, O11, 047, 057)

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Nighttime light intensity measured by weather satellites is a good proxy for GDP.
“A number of recent papers have argued that nighttime light intensity measured by weather satellites is a good proxy for GDP.”
From Economic reforms and industrial policy in a panel of Chinese cities (2016) · cites this paper as Henderson et al. (2012)
The Conclusion describes satellite night lights as a useful proxy for economic activity, supporting the claim’s general point. But Section 3 says the analysis is restricted to growth because light intensity can vary for the same GDP; the paper supports lights as a proxy for GDP growth, not an unqualified proxy for GDP levels. No page number is available in our copy. (LLM, conf=0.86)
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Authors: Henderson, J. V., Storeygard, A., & Weil, D. N.
Affiliations: National Bureau of Economic Research (US)
ORCID: Henderson, J. Vernon
Storeygard, Adam
Weil, David N
Venue: American Economic Review
Publisher: American Economic Association
Published: 2012-04-01
Volume: 102
Issue: 2
Pages: 994-1028
ISSN: 0002-8282 (ISSN-L)
DOI: 10.1257/aer.102.2.994
PMC: PMC4108272
OpenAlex: W3125333792
Cited by: 2,596
References: 22
Citations by year: 2026: 268 · 2025: 246 · 2024: 225 · 2023: 252 · 2022: 295 · 2021: 262 · 2020: 216 · 2019: 222 · 2018: 161 · 2017: 114 · 2016: 102 · 2015: 89 · 2014: 71 · 2013: 37 · 2012: 15
FWCI: 56.17
Type: journal article
Language: en
Open access: green
www.ncbi.nlm.nih.gov
Locations: American Economic Review (publishedVersion)
PubMed (publishedVersion)
Europe PMC (PubMed Central) (acceptedVersion)
PubMed Central (acceptedVersion)
London School of Economics and Political Science Theses Online (London School of Economics and Political Science) (acceptedVersion)
RePEc: Research Papers in Economics (submittedVersion)
Funders: Eunice Kennedy Shriver National Institute of Child Health and Human Development (R24HD041020, T32HD007338)
Topics: Physical Sciences › Environmental Science › Global and Planetary Change › Impact of Light on Environment and Health
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
Physical Sciences › Computer Science › Information Systems › Economic Growth and Development
Keywords: economic growth measurement, nighttime lights, satellite data, GDP growth, income growth, national accounts, measurement error, regional economic growth, sub-Saharan Africa, malaria, primate city, coastal areas

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