1. Introduction
In 2020, the outbreak of the COVID-19 virus caused great loss to the global economy. In June 2020, the International Monetary Fund (IMF) estimated that the global economy would shrink by 4.9% due to the impact of COVID-19 [
1]. The IMF also predicted that the cumulative loss of global gross domestic product (GDP) in 2020 and 2021 would exceed US
$12 trillion [
1]. In March 2020, the International Labor Organization (ILO) predicted that 25 million people would be unemployed due to COVID-19 [
2]. Accurately understanding the impact of COVID-19 on various industries is of great significance for policymakers to formulate targeted policies. In this paper, a method was proposed and evaluated using nighttime light (NTL) data to assess the impact of COVID-19 on the operation of foreign-funded industrial parks. Our main contribution is to propose a set of innovative quantitative impact monitoring index systems derived from NTL data, which can evaluate the impact of COVID-19 on the economy.
A cross-sectional correlation between light and economic activity was noticed in 1972 by Croft T. A. [
3]. When the first night light sensor (operational line scan sensors) on board the Defense Meteorological Satellite Program (DMSP) satellite was launched in 1994, night light data began to be widely used to monitor social and economic activities. As reviewed by Donaldson D. and Storeygard A. [
4], these studies can be predominantly divided into two categories. The first category mainly studies the correlation between NTL data and socioeconomic activities, especially the correlation with GDP. For example, Doll et al. (2006) found that NTL data was correlated with the national-level GDP of 11 European Union countries, while in the United States, NTL and GDP were correlated at several sub-national levels [
5]. Henderson et al. (2012) measured economic growth using NTL data [
6]. Chen et al. (2012) compared GDP and luminosity at the country level in developing countries for the period 1992–2008 [
7]. Galimberti (2020) forecast GDP growth across a global sample of countries using NTL data [
8]. Hu et al. (2020) constructed a global NTL dataset with a long time series (1992–2017) and found that the NTL data in China and India were positively correlated with their respective GDPs, with an
R2-value higher than 0.85 [
9]. In the absence of other data, light data can be utilized as a source of research to analyze socio-economic activity. This type of research includes socio-economic activity mapping at different scales [
10,
11], analysis of the impact of unexpected events (disasters/wars/epidemics, etc.) on socio-economic activities [
12], and analysis of the development of socio-economic activities [
13].
After the outbreak of COVID-19, NTL data quickly became an important tool for monitoring its economic impact, due to its large-scale and near-real-time characteristics. Liu et al. found that the monthly average NTL in China was much lower after the outbreak of COVID-19 [
14]. Ghosh et al. and Elvidge et al. separately investigated the dimming of lights in India and China during the COVID-19 pandemic [
15,
16]. Yin et al. assessed the recovery of urban activity in 17 administrative regions of China during the early-2020 COVID-19 pandemic period using NTL data [
17]. These findings indicate that COVID-19 has seriously affected the daily lives of people in China, India, and other countries around the world. Home quarantine, closures of schools, factories, shops, and other COVID-19 prevention, as well as control measures, have greatly slowed socio-economic activities [
18]. This could lead to a rapid drop in both GDP and NTL index values [
19,
20].
However, to date, analysis of the socioeconomic impact of COVID-19 based on NTL data has mainly focused on the economic impacts in various countries. The impact of COVID-19 will differ according to different targets, industries, and groups of people. After the COVID-19 outbreak, lower levels of air pollutants were found in Egypt [
21] and the southeastern United Kingdom [
22]. While COVID-19 has had little impact on grain production in regions such as Hubei, China [
23], it has brought continuous pressure on the global food supply chain in the form of lockdowns, economic declines, food trade restrictions, and rising food price inflation. Therefore, it has led to health crises in the least developed and developing economies [
24]. Moreover, unemployment and bankruptcy have been reported in industries such as tourism, aviation, restaurants, and the sharing economy [
18,
25].
Foreign enterprises are an important driving force for global economic development, especially in developing countries. They have been severely impacted by COVID-19. Travel restrictions and border closures are the most widely used measures of COVID-19 prevention and control. Foreign-funded enterprises rely on cross-border personnel circulation and material supply, making them susceptible to the impacts of COVID-19 prevention and control measures. However, the impact of COVID-19 on foreign enterprises has received little attention. This makes policymakers unable to formulate targeted policies.
To address this problem, we have considered China’s Industrial Parks present in Southeast Asia (CIPSA) as case studies. The objective of this study is (1) to propose a quantitative monitoring method to monitor the CIPSA operations using NTL data before and after the outbreak of COVID-19, and (2) to compare and analyze the impacts of COVID-19 on CIPSAs and local markets.
The main innovations of this paper include the fact that the impact of COVID-19 on overseas parks has not yet been studied. We propose a quantitative monitoring method for the operational status of CIPSA parks. This includes a quantitative parameter system based on NTL data. We monitored the operation of CIPSA parks before and after the COVID-19 using NTL data. It is conducive for relevant departments to make targeted decisions.
2. Methods
2.1. Method Input and Processing Steps
To compare the operation status before and after the outbreak of COVID-19, a quantitative monitoring method based on NTL data was proposed in this paper. The input of this algorithm includes location information of CIPSAs, NTL time series, and COVID-19 case data. The location information of CIPSAs was in the shp file and used to subset NTL time series to the CIPSAs area. The NTL time series were utilized to extract quantitative NTL index and to further evaluate the CIPSA operations. COVID-19 case data were used to provide information such as the start time and changes of the epidemic. The algorithm was conducted by following steps (
Figure 1): (1) data preprocessing; (2) calculation of quantitative parameters; (3) qualitative and quantitative analysis based on quantitative parameters; and (4) comparative analysis between industrial parks and 10 km buffer areas.
2.2. Calculation of Quantitative Parameters
Generally, the temporal NTL curves for a particular region are similar in different years. Sudden changes in these curves are often caused by emergencies, such as the COVID-19 pandemic. To compare the operation status before and after the outbreak of COVID-19, the temporal mean NTL curves of each CIPSA and their 10 km buffer zones in 2020 and 2019 were drawn. Then, the differences between the 2019 and 2020 curves were evaluated by six ratio parameters to determine whether the operation of each park or 10 km buffer zone was deteriorating after the outbreak. Three parameters were utilized to compare with the pre-epidemic situation, whereas the other three parameters were used to compare with the same month in 2019.
2.2.1. Parameters Calculation for Comparing with the Pre-epidemic Situation
In most Southeast Asian countries, the first COVID-19 case was reported between January and March 2020. Thus, we ask the question: How much did the NTL index decrease after the outbreak started? To answer this question, three ratios of the NTL before and after the outbreak were used to measure the change. They were defined as:
where
NTL_BA_D,
NTL_BA_R, and
NTL_BA_Ri are the ratio index of the NTL before and after the start of the outbreak;
NTLmean,before is the mean NTL index from Jan to March 2020,
NTLmin,after is the minimum NTL index of each park from April to December 2020, and
NTLafter,i is the monthly mean NTL index of each park in month
i from April to December 2020. The
NTL_BA_D was used to evaluate the maximum decline in NTL after the epidemic, which was expressed as a percentage. The greater the value of
NTL_BA_D, the greater the deterioration in the NTL index after the outbreak. The
NTL_BA_Ri was used to evaluate the monthly decline of NT after the epidemic. It was more convenient for us to find out the month NTL started to decline and the month it went back to the pre-epidemic level. When
NTL_BA_Ri < 1, the NTL index started to deteriorate in month
i. The
NTL_BA_R was used to evaluate the overall changes before and after the outbreak.
2.2.2. Parameters Calculation for Comparison with the Same Month in 2019
The second question is: compared to the same period of the previous year, how much did the NTL index decrease after the outbreak? To answer this question, we utilized another three ratio parameters, based on the NTL data ratio between 2019 and 2020, which can be defined as:
where
NTL_Y_Di and
NTL_Y_Ri are the ratio index of the NTL between 2019 and 2020 of month
i,
NTL2020,i and
NTL2019,i are the NTL indexes in month
i in 2020 and 2019, and
NTLmean,2020 and
NTLmean,2020 are the mean NTL indexes data of 2020 and 2019, respectively. The
NTL_Y_Di represents the ratio of the decline in the NTL index caused by COVID-19 relative to the same period in the previous year. Greater values of
NTL_Y_Di indicate a more serious impact of COVID-19.
NTL_Y_R was used to evaluate the overall changes between 2019 and 2020. The
NTL_Y_Ri was more convenient in working out the month NTL started to decline and the month it went back to the pre-epidemic level. If
NTL_Y_Ri < 1, the mean NTL index is lower than in 2019. If the
NTL_Y_Ri value of month
i is equal to or greater than 1, it means that the mean NTL data for this month is equal to or greater than for the same month in 2019.
2.3. Qualitative Analysis of the Operation of Parks after the Outbreak of COVID-19
After the outbreak of COVID-19, two questions need to be answered first: (1) has the operation of the park deteriorated? (2) if it did, when did it start to deteriorate? Once the six ratio parameters are calculated, these questions could be answered.
Both cloud and COVID-19 could lead to changes in temporal NTL curves. However, clouds were removed in the data processing stage and were replaced by invalid values. Thus, when the data were not invalid, changes in the temporal NTL curves can be considered mainly due to COVID-19. These changes may lead to NTL values that are less than those before the COVID-19 outbreak or at the same month in 2019. For example, as the COVID-19 outbreak occurred in February 2020, the NTL values in March 2020 will be less than those in February 2020 and March 2019. The NTL_BA_R value can be used to evaluate whether the NTL decreased, followed by the COVID-19 outbreak. If NTL_BA_R < 1, we considered the operation of the park to have deteriorated before pre- COVID-19. When NTL_BA_Ri < 1, the deterioration started in month i compared to pre- COVID-19 year.
However, NTL data have obvious seasonal changes that could also cause smaller values than before the outbreak [
26]. Thus, we compared the NTL data of each month in 2020 and 2019 to determine whether the operation of the park deteriorated. If the NTL of a park in 2020 was lower than that in 2019 (
NTL_Y_R < 1), we considered the operation of the park to be deteriorated compared to the year 2019. When
NTL_Y_Ri < 1, the deterioration was considered to start in month
i in comparison to the year 2019.
2.4. Quantitative Analysis of the Impact of the COVID-19 Epidemic
After the six parameters were calculated, our questions can be answered quantitatively. The first question is, how much has the light index decreased after the outbreak of the COVID-19 epidemic compared to the pre-COVID-19? This question can be answered using the NTL_BA_D index, which shows the maximum decline in NTL post-COVID-19. The second question is, how much has the light index decreased under the influence of the COVID-19 compared with the NTL index in 2019? This question can be answered using the NTL_Y_D index, which was used to show the maximum decline in the worst situation.
With the advent of COVID-19, the operation of parks has been fluctuating. The recovery of the park’s operation is another concern. We have also investigated the recovery of the park’s operating conditions by comparing it with the pre-pandemic year, i.e., 2019. Two parameters (
NTL_BA_Ri and
NTL_Y_Ri) were utilized to investigate the restoration extent in the operation of the parks. The operation of the park was considered to be in pre-epidemic situation, once the
NTL_BA_Ri > 1. At the same time, the operation of the park was considered to return to the same level as 2019 for
NTL_Y_Ri > 1. Parameters such as
NTL_BA_Ri and
NTL_Y_Ri were calculated starting from April, as the period from January to March 2020 was considered as pre-epidemic.
Table 1 represents the parameters and their usage as adopted in this paper.
2.5. NTL Comparison of Foreign Parks and 10 km Buffer Zones
After the outbreak of COVID-19, various countries issued a series of measures to control its spread. The most commonly adopted measures include: (1) border control, such as the suspension of international flights and tourist visas, closure of borders, and prevention of entry by foreign citizens, and (2) controlling the gathering of people, such as the closure of factories, restaurants, and cinemas. Foreign companies tend to have more foreign employees and rely on the international product supply chain. Therefore, border control measures could result in staff shortages and supply chain disruptions for foreign enterprises. The foreign companies are expected to be severely affected by COVID-19, with a slower recovery chance.
To evaluate the difference in the impact of COVID-19 on foreign companies and the local economy, the NTL time series of CIPSA and the local economy were compared. First, a 10 km buffer zone was applied to each park. These buffer zones were assumed to represent the local economy while inheriting similar economic development conditions to the park. Since these areas were very close to the parks, the COVID-19 prevention and control measures implemented in these areas should be similar to those at the park. Subsequently, the monthly average NTL time series from January 2019 to December 2020 in each buffer zone was calculated. Then, the six ratio parameters for each buffer zone were calculated. Finally, differences in these six parameters between the parks and buffer zones were compared to analyze the (1) change in NTL before and after the outbreak of COVID-19 and (2) the economic recovery in the post-COVID recovery phase. For higher NTL_BA_D and NTL_Y_Di values, the impact of COVID-19 was considered to be serious. The recovery was found to be slower once the time of NTL_BA_Ri and NTL_Y_Ri reached 1.0 later.