Economic vulnerability amidst COVID-19: a district-level analysis of Bangladesh using satellite nightlight data

Abstract

This paper investigated the heterogeneous impact of the COVID-19 pandemic on economic activities across Bangladesh’s 64 districts. Using satellite nightlight data as a proxy for economic activity, we analyzed how infection and mortality rates affected local economies. We found that, while residential mobility remained relatively stable, mobility patterns in retail and workplaces declined significantly. Nightlight intensity decreased sharply during the initial lockdown period, though the impact varied across districts. Despite a gradual post-2020 recovery, disparities between districts became evident. Primary industrial zones, especially those involved in the ready-made garment (RMG) industry, were substantially impacted. Regression results revealed a negative correlation between COVID-19 infections and nightlight intensity, indicating that areas with higher infection rates experienced greater declines in economic activity. Although some regions began to recover, major hubs, particularly those affected by the Delta variant, faced ongoing challenges. Our analysis highlights the importance of district-specific policies to address local disparities and support regional development.