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WORLD CUP 2010: SOUTH AFRICAN ECONOMIC PERSPECTIVES AND POLICY CHALLENGES INFORMED BY THE EXPERIENCE OF GERMANY 2006
Author(s) -
MAENNIG WOLFGANG,
Du PLESSIS STAN
Publication year - 2007
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2007.00074.x
Subject(s) - context (archaeology) , investment (military) , economics , sustainability , cost–benefit analysis , public economics , empirical evidence , ex ante , business , political science , geography , macroeconomics , politics , ecology , philosophy , archaeology , epistemology , law , biology
The paper provides an ex post analysis of the financial burden and economic benefits of the World Cup (WC) in Germany 2006. Based on the usual cost‐benefit measures, the experience of WC 2006 appears to be in line with existing empirical research on large sporting events and sports stadiums, which have rarely identified significant net economic benefits. The lessons from Germany 2006 provide a context for analyzing the potential risks and benefits for South Africa (SA), the WC hosts in 2010. For SA, a careful analysis might be even more urgent to assure the sustainability of investment in stadiums. The paper also argues that the “feel‐good” and public image effects of sports events should no longer be neglected in cost‐benefit studies of large sporting events, even though these effects have the character of experience goods, and their value are thus likely to be underestimated ex ante. ( JEL L83, R53, R58)