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

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.