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Can Medium-Resolution Satellite Imagery Measure Economic Activity at Small Geographies? Evidence from Landsat in Vietnam

Author

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  • Ran Goldblatt
  • Kilian Heilmann
  • Yonatan Vaizman

Abstract

This study explores the potential and the limits of medium-resolution satellite data as a proxy for economic activity at small geographic units. Using a commune-level dataset from Vietnam, it compares the performance of commonly used nightlight data and higher resolution Landsat imagery, which measures daytime light reflection. The analysis suggests that Landsat outperforms nighttime lights at predicting enterprise counts, employment, and expenditure in simple regression models. A parsimonious combination of the first two moments of the Landsat spectral bands can explain a reasonable share of the variation in economic activity in the cross-section. There is, however, poor prediction power of either satellite measure for changes over time.

Suggested Citation

  • Ran Goldblatt & Kilian Heilmann & Yonatan Vaizman, 0. "Can Medium-Resolution Satellite Imagery Measure Economic Activity at Small Geographies? Evidence from Landsat in Vietnam," The World Bank Economic Review, World Bank, vol. 34(3), pages 635-653.
    • Handle: RePEc:oup:wbecrv:v:34:y::i:3:p:635-653.
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    File URL: http://hdl.handle.net/10.1093/wber/lhz001
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    Citations

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    Cited by:

    1. Patrick Lehnert & Michael Niederberger & Uschi Backes-Gellner & Eric Bettinger, 2020. "Proxying Economic Activity with Daytime Satellite Imagery: Filling Data Gaps Across Time and Space," Economics of Education Working Paper Series 0165, University of Zurich, Department of Business Administration (IBW), revised Sep 2022.
    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. John Gibson & Susan Olivia & Geua Boe‐Gibson, 2020. "Night Lights In Economics: Sources And Uses," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 955-980, December.
    4. Masayuki Kudamatsu, 2019. "Observing Economic Growth in Unrecognized States with Nighttime Light," OSIPP Discussion Paper 19E002, Osaka School of International Public Policy, Osaka University.
    5. John Gibson, 2021. "Better Night Lights Data, For Longer," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(3), pages 770-791, June.
    6. repec:lic:licosd:41920 is not listed on IDEAS
    7. John Gibson & Geua Boe-Gibson, 2020. "Three Facts About Night Lights Data," Working Papers in Economics 20/03, University of Waikato.
    8. Heilmann, Kilian & Kahn, Matthew E. & Tang, Cheng Keat, 2021. "The urban crime and heat gradient in high and low poverty areas," Journal of Public Economics, Elsevier, vol. 197(C).
    9. Jaiswal, Sreeja & Bensch, Gunther & Navalkar, Aniket & Jayaraman, T., 2022. "The socio-economic and environmental impact of a large infrastructure project: The case of the Konkan Railway in India," Ruhr Economic Papers 936, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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