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Localization Economies and Firm Productivity: Evidence From Football Teams in São Paulo, Brazil

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  • Brad R. Humphreys
  • Amir B. Ferreira Neto

Abstract

Agglomeration economies affect urban economic outcomes. We analyze variation in sports team productivity and localization of teams across divisions and cities in Campeonato Paulista an annual football competition in São Paulo, Brazil, exploiting plausibly exogenous variation in localization generated by a promotion and relegation system in this league. Results show that urbanization, proxied by population, and localization affects short and long run team productivity. These results provide new evidence on the importance of localization economies in the urban economy in developing countries and shed light on why sports teams in larger cities enjoy more success than those in smaller cities.

Suggested Citation

  • Brad R. Humphreys & Amir B. Ferreira Neto, 2026. "Localization Economies and Firm Productivity: Evidence From Football Teams in São Paulo, Brazil," Southern Economic Journal, John Wiley & Sons, vol. 92(4), pages 1064-1099, April.
    • Handle: RePEc:wly:soecon:v:92:y:2026:i:4:p:1064-1099
    DOI: 10.1002/soej.12790
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