Spatial patterns of development: a Meso approach

Michalopoulos, S and Papaioannou, E (2018) Spatial patterns of development: a Meso approach. Annual Review of Economics, 10. pp. 383-410. ISSN 1941-1383

Abstract

Over the past two decades, the literature on comparative development has moved from country-level to within-country analyses. The questions asked have expanded in scope 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 review, 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.