Friday, April 21, 2017

Tracking Nighttime Lights To Measure Economic Growth In China

Many have long doubted the reliability and accuracy of Chinese economic data. Is Chinese economic growth exaggerated? Regression of the growth of nighttime lights, a model fought with assumptions and potential errors, suggests it isn't. The basis of the model uses satellites to measure the intensity of nighttime light, a proxy for GDP growth.

Personally, I prefer tracking bank loan growth, but those with access to satellite images might recognize a sharp economic downturn faster than most.


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