Does the FIFA World Cup Boost Economies Around the World? – An Empirical Analysis

Posted: 29 Apr 2021

See all articles by Matthias Fett

Matthias Fett

University of the German Federal Armed Forces - Department of Economics

Date Written: April 14, 2021

Abstract

Is the FIFA World Cup a tool for economic development? Should developing countries vie to host it for any price?
This article studies if it makes a difference to economic growth whether a developing country hosts the event. The World Cups 1962 – 2018 are investigated, looking at the first and second wave of developing countries hosting the tournament.
Peer-reviewed literature has focused on South Africa and Brazil recently as examples for empty economic promises. This study not only verifies these observations, but further displays a significant positive economic effect of +0.6 percent for developed countries, while the developing countries experience a decrease of their economic growth rate by 0.9 percent.
This further indicates that emerging markets should not use mega-sport events to achieve politico-economic agendas.

Keywords: FIFA World Cup, BRICS, economic growth, Global South, mega-sport events.

JEL Classification: F43, F62, L83, O47

Suggested Citation

Fett, Matthias, Does the FIFA World Cup Boost Economies Around the World? – An Empirical Analysis (April 14, 2021). Available at SSRN: https://ssrn.com/abstract=3836066 or http://dx.doi.org/10.2139/ssrn.3836066

Matthias Fett (Contact Author)

University of the German Federal Armed Forces - Department of Economics ( email )

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Hamburg, 22043
Germany

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