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.