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World Cup 2010: South African Economic Perspectives and Perspectives Policy Challenges Informed by the Experience of Germany 2006


  • Stan du Plessis
  • Wolfgang Maennig

    () (Chair for Economic Policy, University of Hamburg)


The paper provides a first ex post analysis of the financial burden and economic benefits of the World Cup in Germany 2006. On the usual cost-benefit measures, the experience of WC 2006 appears to be in line with existing empirical work on large sporting events and sport stadia which rarely identify significant net economic benefits. The paper also argues that the “event benefit” or “feel-good factor” of sport events should no longer be neglected in cost-benefit studies of large sporting events, even though these effects are likely to be underestimated ex ante due to their possible experience good character. These lessons from Germany 2006 provide a context for analysing the potential risks and benefits for South Africa, the World Cup hosts in 2010. The paper aims to open a discussion on policy decisions, often at the level of urban planning and architecture, that might improve the balance of costs and benefits for sport events and stadia. To that end the paper attempts to initiate a discussion on the economic effects of “iconic buildings”.

Suggested Citation

  • Stan du Plessis & Wolfgang Maennig, 2007. "World Cup 2010: South African Economic Perspectives and Perspectives Policy Challenges Informed by the Experience of Germany 2006," Working Papers 004, Chair for Economic Policy, University of Hamburg.
  • Handle: RePEc:hce:wpaper:004

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    References listed on IDEAS

    1. Dohmen, Thomas J & Falk, Armin & Huffman, David & Sunde, Uwe, 2006. "Seemingly Irrelevant Events Affect Perceptions and Expectations - The FIFA World Cup 2006 as a Natural Experiment," CEPR Discussion Papers 5851, C.E.P.R. Discussion Papers.
    2. H. R. Bohlmann & Moses J.H. van Heerden, 2005. "The Impact of Hosting a Major Sport Event on the South African Economy," Working Papers 200509, University of Pretoria, Department of Economics.
    3. Carlino, Gerald & Coulson, N. Edward, 2004. "Compensating differentials and the social benefits of the NFL," Journal of Urban Economics, Elsevier, vol. 56(1), pages 25-50, July.
    4. Steffen Rätzel & Joachim Weimann, 2006. "Der Maradona Effekt: Wie viel Wohlfahrt schafft die deutsche Nationalmannschaft?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 257-270, May.
    5. Richard Baldwin & Paul Krugman, 1989. "Persistent Trade Effects of Large Exchange Rate Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 104(4), pages 635-654.
    6. Arne Feddersen & Wolfgang Maennig & Malte Borcherding, 2006. "The Novelty Effect of the New Football Stadia: The Case of Germany," International Journal of Sport Finance, Fitness Information Technology, vol. 1(3), pages 174-188, August.
    7. Wolfgang Maennig & Florian Schwarthoff, 2006. "Stadium Architecture and regional economic development: International experience and the plans of Durban," Working Papers 200604, Chair for Economic Policy, University of Hamburg.
    8. Dennis Coates & Brad R. Humphreys, 2003. "Professional Sports Facilities, Franchises and Urban Economic Development," UMBC Economics Department Working Papers 03-103, UMBC Department of Economics.
    9. Gerd Ahlert, 2001. "The Economic Effects of the Soccer World Cup 2006 in Germany with Regard to Different Financing," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 109-127.
    10. Stephanie Jasmand & Wolfgang Maennig, 2007. "Regional Income and Employment Effects of the 1972 Munich Olympic Summer Games," Working Papers 0712, International Association of Sports Economists;North American Association of Sports Economists.
    11. Maennig, Wolfgang, 2003. "Sonderfinanzierungsmittel für Großveranstaltungen - Manna vom Himmel?," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW – German National Library of Economics / Leibniz Information Centre for Economics, vol. 83(6), pages 392-398.
    12. Robert Baade & Victor Matheson, 2004. "The Quest for the Cup: Assessing the Economic Impact of the World Cup," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 343-354.
    13. Norbert Funke & Friedrich Kißmer & Helmut Wagner, 2006. "International Lessons For The Property Price Boom In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 74(2), pages 205-214, June.
    14. Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe, 2006. "Seemingly Irrelevant Events Affect Economic Perceptions and Expectations: The FIFA World Cup 2006 as a Natural Experiment," IZA Discussion Papers 2275, Institute for the Study of Labor (IZA).
    15. Wagner, Helmut & Kißmer, Friedrich & Funke, Norbert, 2006. "International Lessons for the Property Price Boom in South Africa," Proceedings of the German Development Economics Conference, Berlin 2006 27, Verein für Socialpolitik, Research Committee Development Economics.
    16. Julie L. Hotchkiss & Robert E. Moore & Stephanie M. Zobay, 2003. "Impact of the 1996 Summer Olympic Games on Employment and Wages in Georgia," Southern Economic Journal, Southern Economic Association, vol. 69(3), pages 691-704, January.
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. repec:bla:reviec:v:25:y:2017:i:2:p:279-291 is not listed on IDEAS
    6. 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.
    7. Fourie, Johan & Santana-Gallego, María, 2011. "The impact of mega-sport events on tourist arrivals," Tourism Management, Elsevier, vol. 32(6), pages 1364-1370.
    8. Zawadzki, Krystian & Wasilczuk, Julita, 2013. "Impact of the Euro 2012 on the Pomeranian Region and Its Small and Medium Enterprises in Terms of Competitiveness," MPRA Paper 44468, University Library of Munich, Germany.


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