Concentration of populations and economic activities, growth, and convergence in Europe using satellite-observed lighting

Abstract

Using a unique data set of annual nighttime satellite images from the Defense Meteorological Satellite Program’s Operational Linescan System, this article, under the assumption that the density of sum of lights is a proxy for the concentration of populations and economic activities, provides empirically based evidence on the extent of concentration, growth and convergence in Europe between 1992 and 2012. We find that the concentration of populations and economic activities was associated with the level, density and growth of economic factors. Decomposing these economic factors, the agricultural sector, which was a sector resilient to economic recession, seems to have been the key determinant of concentration. Finally, there is strong evidence of divergence in concentration, implying that socioeconomic activities will continue to be concentrated in European urban areas.

Keywords:

• Satellite-observed lighting
• concentration
• growth
• convergence
• Europe
• economic recession

JEL codes:

• R11
• R12
• O18
• O52

Notes

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 NUTS I level is used for analysing regional problems within the EU, such as the effect of the customs union and economic integration on areas at the next level down from the national area, while the NUTS III level is too small for complex economic analysis and is used for specific analysis or to pinpoint where regional measures need to be taken (European Commission 2011).

2 The correlation coefficients between the economic variables can be provided upon request.