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On the Use of Satellite-Based Vehicle Flows Data to Assess Local Economic Activity: The Case of Philippine Cities

Author

Listed:
  • Go, Eugenia

    (Asian Development Bank)

  • Nakajima, Kentaro

    (Hitotsubashi University)

  • Sawada , Yasuyuki

    (University of Tokyo)

  • Taniguchi, Kiyoshi

    (Asian Development Bank)

Abstract

The lack of suitable data is a key challenge in ex-post policy evaluations. This paper proposes a novel data to measure local economic activities using vehicle counts in each 500 meter (m) x 500 m tile. The metric is derived from high resolution satellite images using a machine learning algorithm. Using the opening of the new international airport terminal in Cebu, Philippines, as a quasi-experiment, we estimate the impact of the new infrastructure on the local economy of Metro Cebu. Results of the difference-in-differences analysis show that the new terminal significantly increased vehicle traffic in urban Cebu. The effect decays with distance from the airport, is stronger in areas where hotels are located, and is most pronounced in the peak months for international tourists. These findings imply that the opening of the new international terminal has enhanced Cebu's local economy through international tourism.

Suggested Citation

  • Go, Eugenia & Nakajima, Kentaro & Sawada , Yasuyuki & Taniguchi, Kiyoshi, 2022. "On the Use of Satellite-Based Vehicle Flows Data to Assess Local Economic Activity: The Case of Philippine Cities," ADB Economics Working Paper Series 652, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0652
    as

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    References listed on IDEAS

    as
    1. Benjamin Faber & Cecile Gaubert, 2019. "Tourism and Economic Development: Evidence from Mexico's Coastline," American Economic Review, American Economic Association, vol. 109(6), pages 2245-2293, June.
    2. Gibson, John & Olivia, Susan & Boe-Gibson, Geua & Li, Chao, 2021. "Which night lights data should we use in economics, and where?," Journal of Development Economics, Elsevier, vol. 149(C).
    3. Dave Donaldson & Adam Storeygard, 2016. "The View from Above: Applications of Satellite Data in Economics," Journal of Economic Perspectives, American Economic Association, vol. 30(4), pages 171-198, Fall.
    4. Raj Chetty & John N. Friedman & Michael Stepner & The Opportunity Insights Team, 2020. "The Economic Impacts of COVID-19: Evidence from a New Public Database Built Using Private Sector Data," NBER Working Papers 27431, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    transportation infrastructure; satellite imagery data;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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