Skip to main content
Article thumbnail
Location of Repository

The Economic Impacts of Government Financing of the 2010 FIFA World Cup

By Ramos Mabugu and Ahmed Mohamed

Abstract

This paper presents estimates of the economic impacts of financing the hosting of the 2010 FIFA World Cup by the government of South Africa. Ex ante analysis using a fiscal social accounting matrix model indicates that hosting of the event impacts positively on gross domestic product and imports. The positive impact on imports will, inter alia, lead to deterioration in the current account deficit for a given amount of exports. Owners of capital benefit more than owners of labour as a result of 2010 FIFA World Cup expenditures by the government. Middle-income Black households are the largest winners, followed by high-income Whites. Asians experience the least gain. These outcomes are explained by the initial factor endowments and their sectoral allocation in the social accounting matrix. Government revenue goes up in response to the demand injection, and a large proportion of it accrues to central government and local government respectively.2010 FIFA World Cup, Economic Impact, SAM Modelling, Legacy, South Africa

OAI identifier:

Suggested articles

Citations

  1. (1988). Accelerating the future-state: urban impact of hosting the 1988 Seoul Olympic Games. In:
  2. (1997). Atlanta and the Olympics: A one-year retrospective.
  3. (1998). Beyond intermezzo? On the long-term industrial impacts of mega-events: the case of Lillehammer
  4. (1998). Biased policies, agriculture and income distribution in South Africa: A Social Accounting Matrix approach,
  5. (2006). Budget Review: 2005/2006). Government Printer.
  6. (2003). Economic aspects and the summer Olympics: A review of related research.
  7. (1996). Festivals and mega-events: Varying roles and responsibilities.
  8. (1997). Football came home: the economic impact of
  9. (1988). Hosting the Olympic Games: Long-term benefits to sport and culture. In:
  10. (1999). Mega-events and urban social transformation: Human development and the 2004 Cape Town Olympic bid.
  11. (1992). MIDE: A macroeconomic multisectoral model of the Spanish economy. Unpublished PhD Thesis,
  12. (2006). Predicting the Economic Impact of the 2010 FIFA World Cup on South Africa, University of Pretoria, Department of Economics Working Paper Series: 2006-11 Available at http://www.up.ac.za/up/web/en/academic/economics/index.html
  13. (2003). Soccer World Cup Bid Executive Summary. Available online at www.polity.org.za Thornton, G.,
  14. (2004). The economy-wide impacts of labour intensification of infrastructure expenditure. Paper presented at the
  15. (1987). The effects of hallmark events on cities.
  16. (2004). The impact of the 2002 World Cup on South Korea: Comparisons of pre- and post-games. Journal of Tourism Management.

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.