Mapping GDP and PPPs at Sub-National Level Through Earth Observation in Eastern Europe and CIS Countries

Following the line of research, originated from the paper by Henderson et al. (2012), this article focuses on how “observations from the above", in the form of night-lights satellite data, might contribute in mapping at very fine geographical level (ideally, one square km), two core macroeconomic indicators used extensively in the Sustainable Development Goals monitoring and reporting framework: Gross Domestic Product (GDP) and Purchasing Power Parities (PPPs). Recent empirical economic studies have paid increasing attention on the association between night-lights observations and economic growth, in order to estimate a consistent and objective level of economic activities at subnational level.

In the present paper, analyses are carried out on a panel of 17 Eastern Europe and CIS countries for the period 2000-2013 and use is made of indicators constructed from satellite images in the form of night lights, as processed by the US Department of Defense, and its Defense Meteorological Satellite Program’s OperationalLinescan System. Estimations of GDP in current US dollars and PPP terms are carried out at both national and sub-national level, and results are compared with the official available information. Estimates of GDP and PPP were also compared, at national level, with those in the World Bank data-set, showing similar behaviours. Results are used to obtain gridded maps of GDPs and PPPs.

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