Harmonized luminosity and economic activity across provinces in China: Cross-sectional differences, regional time series, and inequality dynamics

This article examines the relationship between income and luminosity across Chinese provinces over the period 2000–2020 using newly harmonized night-time lights (NTL) data. We find that NTL luminosity is suitable for analysing both time-series and cross-sectional changes in economic activity. However, the relationship between luminosity and GDP changes over time and can even turn negative, challenging the direct application of established GDP-NTL elasticities. We also find that applying time-series filters can substantially increase the R-squared and statistical significance of the GDP-NTL relationship for problematic periods.

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