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ResearchPaper
2016

Illuminating the World Cup effect : night lights evidence from South Africa

Abstract (English)

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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Publication series

Hohenheim discussion papers in business, economics and social sciences; 2016,16

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Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institute of Economics

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Language
English

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Classification (DDC)
330 Economics

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BibTeX

@techreport{Pfeifer2016, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/6086}, author = {Pfeifer, Gregor and Wahl, Fabian and Marczak, Martyna et al.}, title = {Illuminating the World Cup effect : night lights evidence from South Africa}, year = {2016}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }