Some Supplementary Regional Economic Effects of a Premier League Soccer Club: Theoretical and empirical Considerations beyond Regional Multiplier Analysis
AbstractUsing a well-known German soccer club – Borussia Monchengladbach – as an example the present article deals with some supplemaentary regional economic effects of soccer clubs. Theoretical considerations suggest that such effects appear, because soccer clubs can raise a city’s awareness level and improve its image, can be a relevant location factor by itself and can result in a “psychic income” accruing to the inhabitants of the city. All these effects are not only of direct interest for regional economic development, but they can indirectly increase the number of firms settling in the region and/or the level of regional tourism. These theoretical considerations are empirically tested by different methodological approaches – survey of households, survey of experts and media presence analysis. The empirical analysis shows that Borussia Monchengladbach releases an impulse to its location city that noticeably exceeds “normal” demand-side effects. This impulse is connected with the mentioned theoretical aspects. Though all attempts to quantifiy the supplementary effects can only give a rough impression of its true dimension of these effects, it can be stated that the supplementary effects of a sports club (or a major sporting event) are at least as important as demand-side effects normally are are.
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Bibliographic InfoArticle provided by Hellenic Association of Regional Scientists in its journal Regional Science Inquiry Journal.
Volume (Year): II (2010)
Issue (Month): 1 (June)
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Regional Multiplier Analysis; Premier League Soccer Club; Borussia Monchengladbach; soccer clubs;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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