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Analysing the Impact of the 2010 Soccer World Cup on South Africa: A Synthetic Control Method

Author

Listed:
  • B. Moyo

    (University of South Africa)

  • T. Gwatidzo

    (University of the Witwatersrand)

Abstract

The announcement that South Africa would host the 2010 FIFA World Cup in 2004 was a triumphant moment for the country and the African continent at large. It marked the first time in FIFA's history that an African country would host the World Cup. In this study, we use the synthetic control method to create a counterfactual South Africa without the World Cup and compare it with the actual South Africa to analyse the impact of this tournament. Our results show that, although hosting the World Cup games in 2010 had no positive impact on GDP, it significantly increased tourism inflows. We, however, found evidence that GDP did increase from the announcement of South Africa hosting the tournament to one year before the event. This suggests that the analysis of these events should focus on both the year of the event and the period immediately after the host announcement.

Suggested Citation

  • B. Moyo & T. Gwatidzo, 2025. "Analysing the Impact of the 2010 Soccer World Cup on South Africa: A Synthetic Control Method," Working Papers WP032025, African Economic and Social Research Institute (AESRI).
    • Handle: RePEc:afa:wpaper:wp032025
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    File URL: https://aesri.org/RePEc/afa/afa-wpaper/WP032025.pdf
    File Function: Revised version, 2026
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    Keywords

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    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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