Working Paper: CEPR ID: DP12574
Authors: Stelios Michalopoulos; Elias Papaioannou
Abstract: Over the last two decades, the literature on comparative development has moved from country-level to within-country analyses. The questions asked have expanded, as economists have used satellite images of light density at night and other big spatial data to proxy for development at the desired level. The focus has also shifted from uncovering correlations to identifying causal relations, using elaborate econometric techniques including spatial regression discontinuity designs. In this survey we show how the combination of geographic information systems with insights from disciplines ranging from the earth sciences to linguistics and history has transformed the research landscape on the roots of the spatial patterns of development. We discuss the limitations of the luminosity data and associated econometric techniques and conclude by offering some thoughts on future research.
Keywords: development; language; ethnicity; history; borders; luminosity; regression discontinuity; regions
JEL Codes: N00; N9; O10; O43; O55
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| luminosity (Y90) | GDP per capita (O49) |
| luminosity (Y90) | economic activity (E20) |
| luminosity (Y90) | household wealth (D14) |
| luminosity (Y90) | education levels (I24) |