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

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.