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Do local businesses benefit from sports facilities? The case of major league sports stadiums and arenas

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  • Abbiasov, Timur
  • Sedov, Dmitry

Abstract

We use daily mobile foot traffic data covering major league sports facilities and the surrounding commercial establishments in the US to pin down the size and the spatial distribution of foot traffic spillovers from sports facilities to local businesses. By employing the fixed effects and the IV estimation strategies, we show that the spillover benefits are heterogeneous across sports and business sectors. We find that 100 baseball stadium visits generate roughly 29 visits to nearby food & accommodation businesses and about 6 visits to local retail establishments. While the estimates for football stadiums are comparable, basketball & hockey arenas do not appear to generate significant spillovers for the surrounding businesses.

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  • Abbiasov, Timur & Sedov, Dmitry, 2023. "Do local businesses benefit from sports facilities? The case of major league sports stadiums and arenas," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:regeco:v:98:y:2023:i:c:s0166046222000916
    DOI: 10.1016/j.regsciurbeco.2022.103853
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    Cited by:

    1. Lindlacher Valentin & Gustav Pirich, 2024. "The Impact of China’s “Stadium Diplomacy” on Local Economic Development in Sub-Saharan Africa," CESifo Working Paper Series 10893, CESifo.

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    More about this item

    Keywords

    Sports facilities; Spatial spillovers; Establishment-level data;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Z20 - Other Special Topics - - Sports Economics - - - General

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