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Constructing spatiotemporal poverty indices from big data

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  • Njuguna, Christopher
  • McSharry, Patrick

Abstract

Big data offers the potential to calculate timely estimates of the socioeconomic development of a region. Mobile telephone activity provides an enormous wealth of information that can be utilized alongside household surveys. Estimates of poverty and wealth rely on the calculation of features from call detail records (CDRs), however, mobile network operators are reluctant to provide access to CDRs due to commercial and privacy concerns. As a compromise, this study shows that a sparse CDR dataset combined with other publicly available datasets based on satellite imagery can yield competitive results. In particular, a model is built using two CDR-based features, mobile ownership per capita and call volume per phone, combined with normalized satellite nightlight data and population density, to estimate the multi-dimensional poverty index (MPI) at the sector level in Rwanda. This model accurately estimates the MPI for sectors in Rwanda that contain mobile phone cell towers (cross-validated correlation of 0.88).

Suggested Citation

  • Njuguna, Christopher & McSharry, Patrick, 2017. "Constructing spatiotemporal poverty indices from big data," Journal of Business Research, Elsevier, vol. 70(C), pages 318-327.
    • Handle: RePEc:eee:jbrese:v:70:y:2017:i:c:p:318-327
    DOI: 10.1016/j.jbusres.2016.08.005
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    8. El-Haddadeh, Ramzi & Osmani, Mohamad & Hindi, Nitham & Fadlalla, Adam, 2021. "Value creation for realising the sustainable development goals: Fostering organisational adoption of big data analytics," Journal of Business Research, Elsevier, vol. 131(C), pages 402-410.
    9. Ola Hall & Mattias Ohlsson & Thortseinn Rognvaldsson, 2022. "Satellite Image and Machine Learning based Knowledge Extraction in the Poverty and Welfare Domain," Papers 2203.01068, arXiv.org.
    10. Ola Hall & Francis Dompae & Ibrahim Wahab & Fred Mawunyo Dzanku, 2023. "A review of machine learning and satellite imagery for poverty prediction: Implications for development research and applications," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1753-1768, October.
    11. McSharry, Patrick & Mawejje, Joseph, 2024. "Estimating urban GDP growth using nighttime lights and machine learning techniques in data poor environments: The case of South Sudan," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
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    14. Linden McBride & Christopher B. Barrett & Christopher Browne & Leiqiu Hu & Yanyan Liu & David S. Matteson & Ying Sun & Jiaming Wen, 2022. "Predicting poverty and malnutrition for targeting, mapping, monitoring, and early warning," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 879-892, June.
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