Economic Vulnerability Amidst COVID-19: A District-Level Analysis of Bangladesh

This paper explores the economic implications of the COVID-19 pandemic at the district level in Bangladesh, filling a notable gap in the existing literature. We leverage satellite nightlights data as a proxy for economic activity and offer insights into the pandemic-induced disparities across Bangladesh’s 64 districts. Our findings indicate a decline in mobility in sectors such as retail and workplaces, whereas residential mobility remained stable, signaling behavioral resilience. Satellite data further reveal adaptive economic strategies, especially during lockdowns. Despite the post-2020 socio-economic resilience evident in the recovery of nightlight intensity, disparities have emerged across districts, with primary industrial zones showing significant impacts on the RMG industry. Our regression analysis correlates COVID-19 infections with economic downturns, suggesting that areas self-regulate in the face of increased infections. While some regions displayed economic recovery, major hubs faced challenges, especially from the Delta variant. Importantly, districts with more COVID-19 hospital beds exhibited faster recovery. These insights underline the importance of robust healthcare infrastructure in ensuring economic resurgence and emphasize the need for region-specific recovery strategies and a strengthened healthcare sector.