Using Nighttime Luminosity as a Proxy for Economic Growth in Africa: Is It a Bright Idea?

In this paper, we question whether night light luminosity data can be used as an alternative measure of GDP in 49 African countries. For this to be proven true, evidence of significant relationships between night light data and GDP time series variables needs to be confirmed through empirical analy...

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Main Authors: Nicolene Hamman, Andrew Phiri
Format: Article
Language:English
Published: University of Primorska 2022-06-01
Series:Managing Global Transitions
Subjects:
Online Access:https://212.235.226.96/index.php/fm/article/view/76
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author Nicolene Hamman
Andrew Phiri
author_facet Nicolene Hamman
Andrew Phiri
author_sort Nicolene Hamman
collection DOAJ
description In this paper, we question whether night light luminosity data can be used as an alternative measure of GDP in 49 African countries. For this to be proven true, evidence of significant relationships between night light data and GDP time series variables needs to be confirmed through empirical analysis. In differing from previous studies, we employ pooled mean group (PMG) cross sectional cointegration estimators and wavelet coherence tools to examine the cointegration relationships and time-frequency synchronizations between GDP and DMSP-OLS night light intensity for annual data collected between 1992 and 2012. All in all, we find little evidence of significant relationships between nighttime data and GDP for individual African countries and therefore caution policymakers in strictly using DMSP-OLS data to create synthetic measures of economic growth. Possible avenues for future research are further recommended at the end of the study.
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spelling doaj.art-19c0c8555ca44ce19c8b1cc2b0ad49702022-12-22T03:38:52ZengUniversity of PrimorskaManaging Global Transitions1854-69352022-06-01202Using Nighttime Luminosity as a Proxy for Economic Growth in Africa: Is It a Bright Idea?Nicolene Hamman0Andrew Phiri1Nelson Mandela UniversityNelson Mandela University In this paper, we question whether night light luminosity data can be used as an alternative measure of GDP in 49 African countries. For this to be proven true, evidence of significant relationships between night light data and GDP time series variables needs to be confirmed through empirical analysis. In differing from previous studies, we employ pooled mean group (PMG) cross sectional cointegration estimators and wavelet coherence tools to examine the cointegration relationships and time-frequency synchronizations between GDP and DMSP-OLS night light intensity for annual data collected between 1992 and 2012. All in all, we find little evidence of significant relationships between nighttime data and GDP for individual African countries and therefore caution policymakers in strictly using DMSP-OLS data to create synthetic measures of economic growth. Possible avenues for future research are further recommended at the end of the study. https://212.235.226.96/index.php/fm/article/view/76DMSP-OLSnight lighteconomic growthcomplex wavelet analysisMorlet waveletsAfrica
spellingShingle Nicolene Hamman
Andrew Phiri
Using Nighttime Luminosity as a Proxy for Economic Growth in Africa: Is It a Bright Idea?
Managing Global Transitions
DMSP-OLS
night light
economic growth
complex wavelet analysis
Morlet wavelets
Africa
title Using Nighttime Luminosity as a Proxy for Economic Growth in Africa: Is It a Bright Idea?
title_full Using Nighttime Luminosity as a Proxy for Economic Growth in Africa: Is It a Bright Idea?
title_fullStr Using Nighttime Luminosity as a Proxy for Economic Growth in Africa: Is It a Bright Idea?
title_full_unstemmed Using Nighttime Luminosity as a Proxy for Economic Growth in Africa: Is It a Bright Idea?
title_short Using Nighttime Luminosity as a Proxy for Economic Growth in Africa: Is It a Bright Idea?
title_sort using nighttime luminosity as a proxy for economic growth in africa is it a bright idea
topic DMSP-OLS
night light
economic growth
complex wavelet analysis
Morlet wavelets
Africa
url https://212.235.226.96/index.php/fm/article/view/76
work_keys_str_mv AT nicolenehamman usingnighttimeluminosityasaproxyforeconomicgrowthinafricaisitabrightidea
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