Satellite Nighttime Lights as a Measurement of Economic Growth in Mexico’s Municipalities

Abstract

The lack of information regarding economic performance and the temporal limitations of national accounts and economic censuses at a local level in Mexico motivates the exploration of alternative indicators. Based on Henderson (2012), in this document, economic dynamism is analyzed thought the use of satellite nighttime lights images. This construction complements the omissions of information and measures economic dynamism at sub-national level. Results highlight that changes in luminosity observed from outer space are positively related to economic dynamism, so the luminosity variable can be used as a proxy to analyze changes in Gross Domestic Product (GDP)

Keywords

• satellite nighttime lights images
• economic dynamism
• municipalities