A Kick for the GDP: The Effect of Winning the FIFA World Cup

39 Pages Posted: 28 Sep 2022

See all articles by Marco Mello

Marco Mello

University of Surrey - School of Economics

Date Written: September 21, 2022

Abstract

This paper uses OECD data starting from 1961 to examine whether winning the FIFA World Cup boosts GDP growth, as it is claimed by analysts and media outlets concomitantly with every edition of this football competition. By implementing both an event-study design and a synthetic difference-in-difference strategy, the analysis shows that winning the FIFA World Cup increases GDP growth by at least 0.25 percentage points in the two subsequent quarters. This result seems primarily driven by enhanced exports growth, which is consistent with a greater appeal enjoyed by national products and services on the global market after the victory of a major sport event. Instead, there are no significant effects on GDP growth for the host country.

Keywords: World Cup, GDP, growth, event-study, synthetic difference-in-difference.

JEL Classification: Z20, O47.

Suggested Citation

Mello, Marco, A Kick for the GDP: The Effect of Winning the FIFA World Cup (September 21, 2022). Available at SSRN: https://ssrn.com/abstract=4226179 or http://dx.doi.org/10.2139/ssrn.4226179

Marco Mello (Contact Author)

University of Surrey - School of Economics ( email )

Guildford, Surrey GU2 7XH
United Kingdom

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