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Illuminating the world cup effect: Night lights evidence from South Africa

Listed author(s):
  • Pfeifer, Gregor
  • Wahl, Fabian
  • Marczak, Martyna

This paper evaluates the economic impact of the $14 billion preparatory investments for the 2010 FIFA World Cup in South Africa. We use satellite data on night light luminosity at municipality and electoral district level as a proxy for economic development, applying synthetic control methods for estimation. For the average World Cup municipality, we find significantly positive, short-run effects before the tournament, corresponding to a reduction of unemployment by 1.3 percentage points. At the electoral district level, we reveal distinct effect heterogeneity, where especially investments in transport infrastructure are shown to have long-lasting, positive effects, particularly in more rural areas.

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File URL: https://www.econstor.eu/bitstream/10419/147304/1/871669099.pdf
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Paper provided by University of Hohenheim, Faculty of Business, Economics and Social Sciences in its series Hohenheim Discussion Papers in Business, Economics and Social Sciences with number 16-2016.

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Date of creation: 2016
Handle: RePEc:zbw:hohdps:162016
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