Institute Working Paper 4

Spatial Patterns of Development: A Meso Approach

Stelios Michalopoulos | Visiting Scholar, Opportunity & Inclusive Growth Institute, Brown University, CEPR, and NBER
Elias Papaioannou | London Business School and CEPR

Published November 28, 2017

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.

DOI: https://doi.org/10.21034/iwp.4

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