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Predicting Provincial Gross Domestic Product Using Satellite Data and Machine Learning Methods: A Case Study of Thailand

Author

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  • NATTAPONG PUTTANAPONG

    (Faculty of Economics, Thammasat University, Thailand)

  • NUTCHAPON PRASERTSOONG

    (Faculty of Economics, Thammasat University, Thailand)

  • WICHAYA PEECHAPAT

    (Faculty of Economics, Thammasat University, Thailand)

Abstract

This study introduced a new approach for monitoring regional development by applying satellite data with machine learning algorithms. Satellite data that represent physical features and environmental factors were obtained by developing a web-based application on the Google Earth Engine platform. Four machine learning methods were applied to the obtained geospatial data to predict provincial gross domestic product. The random forest method achieved the highest predictive performance, with 97.7% accuracy. The constructed random forest model was extended to conduct variable importance and minimal depth analyses, enabling the quantification of a factor’s influence on the prediction outcome. Variable importance and minimal depth analyses generated similar results, indicating that urban area and population are the most influential factors. Moreover, environmental and climate indicators exert medium-level effects. This study showed that integrating available satellite data and machine learning methods could be an alternative framework for facilitating a timely and costless monitoring system of regional development.

Suggested Citation

  • Nattapong Puttanapong & Nutchapon Prasertsoong & Wichaya Peechapat, 2023. "Predicting Provincial Gross Domestic Product Using Satellite Data and Machine Learning Methods: A Case Study of Thailand," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 40(02), pages 39-85, September.
  • Handle: RePEc:wsi:adrxxx:v:40:y:2023:i:02:n:s0116110523400024
    DOI: 10.1142/S0116110523400024
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    Keywords

    Google Earth Engine; machine learning; regional development; satellite data; Thailand;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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