Illuminating the world cup effect: Night lights evidence from South Africa
Fabian Wahl () and
Martyna Marczak ()
No 16-2016, Hohenheim Discussion Papers in Business, Economics and Social Sciences from University of Hohenheim, Faculty of Business, Economics and Social Sciences
This paper evaluates the economic impact of the $14 billion preparatory investments for the 2010 FIFA World Cup in South Africa. We use satellite data on night light luminosity at municipality and electoral district level as a proxy for economic development, applying synthetic control methods for estimation. For the average World Cup municipality, we find significantly positive, short-run effects before the tournament, corresponding to a reduction of unemployment by 1.3 percentage points. At the electoral district level, we reveal distinct effect heterogeneity, where especially investments in transport infrastructure are shown to have long-lasting, positive effects, particularly in more rural areas.
Keywords: Football World Cup; Public Infrastructure; Development; Night Lights Data; Synthetic Control Methods; Mega Sports Events; South Africa (search for similar items in EconPapers)
JEL-codes: H54 O18 R11 R42 Z28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-spo, nep-tre and nep-ure
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Working Paper: Illuminating the World Cup Effect: Night Lights Evidence from South Africa (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:hohdps:162016
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