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World Cup 2010: South African Economic Perspectives And Policy Challenges Informed By The Experience Of Germany 2006

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  • WOLFGANG MAENNIG
  • STAN du PLESSIS

Abstract

"The paper provides an ex post analysis of the financial burden and economic benefits of the World Cup (WC) in Germany 2006. Based on the usual cost-benefit measures, the experience of WC 2006 appears to be in line with existing empirical research on large sporting events and sports stadiums, which have rarely identified significant net economic benefits. The lessons from Germany 2006 provide a context for analyzing the potential risks and benefits for South Africa (SA), the WC hosts in 2010. For SA, a careful analysis might be even more urgent to assure the sustainability of investment in stadiums. The paper also argues that the "feel-good" and public image effects of sports events should no longer be neglected in cost-benefit studies of large sporting events, even though these effects have the character of experience goods, and their value are thus likely to be underestimated ex ante." ("JEL" L83, R53, R58) Copyright 2007 Western Economic Association International.

Suggested Citation

  • WOLFGANG MAENNIG & STAN du PLESSIS, 2007. "World Cup 2010: South African Economic Perspectives And Policy Challenges Informed By The Experience Of Germany 2006," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 578-590, October.
  • Handle: RePEc:bla:coecpo:v:25:y:2007:i:4:p:578-590
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    References listed on IDEAS

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    Blog mentions

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    1. Coupe du Monde de la FIFA 2014 au Brésil : est-ce vraiment rentable ?
      by julien.moussavi@gmail.com (Julien Moussavi) in BS Initiative on 2014-06-05 13:28:44

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    Cited by:

    1. Andrew K. Rose & Mark M. Spiegel, 2011. "The Olympic Effect," Economic Journal, Royal Economic Society, vol. 121(553), pages 652-677, June.
    2. Wolfgang Maennig, 2017. "Public Referenda and Public Opinion on Olympic Games," Working Papers 057, Chair for Economic Policy, University of Hamburg.
    3. Roberto Gásquez & Vicente Royuela, 2014. "Is Football an Indicator of Development at the International Level?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 827-848, July.
    4. José Ba-os & Plácido Rodríguez, 2013. "Spain and the FIFA World Cup 2018/2022: a qualitative and quantitative analysis," Chapters,in: The Econometrics of Sport, chapter 12, pages 202-220 Edward Elgar Publishing.
    5. Brad R. Humphreys & Bruce K. Johnson & John C. Whitehead, 2017. "Validity and Reliability of Contingent Valuation and Life Satisfaction Measures of Welfare: An Application to the Value of National Olympic Success," Working Papers 17-08, Department of Economics, Appalachian State University.
    6. Fourie, Johan & Santana-Gallego, María, 2011. "The impact of mega-sport events on tourist arrivals," Tourism Management, Elsevier, vol. 32(6), pages 1364-1370.
    7. Franziska K. Kruse & Wolfgang Maennig, 2017. "The future development of world records," Working Papers 061, Chair for Economic Policy, University of Hamburg.
    8. Falch, Torberg & Fischer, Justina A.V., 2012. "Public sector decentralization and school performance: International evidence," Economics Letters, Elsevier, vol. 114(3), pages 276-279.
    9. Wolfgang Maennig, 2017. "Governance in Sports Organizations," Working Papers 060, Chair for Economic Policy, University of Hamburg.
    10. Fischer, Justina AV & Sousa-Poza, Alfonso, 2010. "The impact of institutions on firms’ rejuvenation policies: Early retirement with severance pay versus simple lay-off. A Cross-European Analysis," MPRA Paper 20343, University Library of Munich, Germany.
    11. M.R. van den Berg & M. de Nooij, 2013. "The bidding paradox: why economists, consultants and politicians disagree on the economic effects of mega sports events but might agree on their attractiveness," Working Papers 13-08, Utrecht School of Economics.
    12. Gabriel M. Ahlfeldt & Wolfgang Maennig & Felix J. Richter, 2017. "Zoning in reunified Berlin," Working Papers 059, Chair for Economic Policy, University of Hamburg.
    13. Plácido Rodríguez & Stefan Késenne & Jaume García (ed.), 2013. "The Econometrics of Sport," Books, Edward Elgar Publishing, number 14811, April.
    14. Stan du Plessis & Wolfgang Maennig, 2012. "The 2010 FIFA World Cup High-frequency Data Economics: Effects on International Tourism and Awareness for South Africa," Chapters,in: International Handbook on the Economics of Mega Sporting Events, chapter 27 Edward Elgar Publishing.
    15. Anton Cartwright, 2012. "Can Mega Events Deliver Sustainability? The Case of the 2010 FIFA World Cup in South Africa," Chapters,in: International Handbook on the Economics of Mega Sporting Events, chapter 8 Edward Elgar Publishing.
    16. Stan du Plessis & Wolfgang Maennig, 2012. "The 2010 FIFA World Cup High-frequency Data Economics: Effects on International Tourism and Awareness for South Africa," Chapters,in: International Handbook on the Economics of Mega Sporting Events, chapter 27 Edward Elgar Publishing.
    17. Wolfgang Maennig, 2017. "Major Sports Events: Economic Impact," Working Papers 058, Chair for Economic Policy, University of Hamburg.

    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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