Economics professor examines productivity impact of World Cup

The World Cup has an economic effect on participating countries, according to an analysis of 50 years of nations’ economic data that examined their World Cup success during the same time period.

Craig Depken, an economics professor in the Belk College of Business, collaborated with Dennis Wilson of Western Kentucky University on the working paper “The Long-Run Impacts of the World Cup.” It details the loss of productivity that happens in a country when its team is in the World Cup.

In countries where football (soccer) is in high demand, “individuals … might ‘purchase’ their enjoyment of the World Cup with reduced GDP growth in the year the finals take place,” the authors stated.

“For instance, suppose Brazil advances from the round-robin first round to the second round of play … the single elimination tournament now invites Brazilians to watch other matches in anticipation that one or the other participants might eventually square off against their team,” wrote the researchers. “Thus, the further the Brazilian team advances in the tournament the more time is spent watching soccer, by some number of people, and less time is necessarily spent in productive activities.”

The paper was profiled recently in The Motley Fool.