IDEAS home Printed from https://ideas.repec.org/a/eee/spomar/v20y2017i3p285-295.html
   My bibliography  Save this article

Do they make a difference? Professional team sports clubs’ effects on migration and local growth: Evidence from Denmark

Author

Listed:
  • Storm, Rasmus K.
  • Thomsen, Frederik
  • Jakobsen, Tor Georg

Abstract

It is a common argument in Denmark that municipal involvement in professional team sports can be justified on the grounds of local impact. The use of public funds to directly or indirectly subsidise local professional team sports clubs (PTSCs) is often seen as warranted due to the PTSCs’ positive effects on local economic growth or (inbound) municipal migration. However, can PTSCs be associated with tangible effects at all? This question has never been answered properly in a European context. Based on data covering the 2008–2013 period, and using spatial panel regression models, this article examines this issue in relation to three dominant professional sports in Denmark: football (soccer), handball and ice hockey. The study finds effects for only one of the sports examined, with Danish handball clubs exercising a marginal effect on average income. Ice hockey’s effect is negative and football remains insignificant in all models deployed. Concerning migration, negative effects are found in relation to female handball clubs. These findings are consistent with previous research and have implications for local sport policies and managers. Municipal politicians, public authorities or sport managers should no longer rationalise the use of public funds for local PTSCs on the assumption of (tangible) economic effects or population growth, as it appears to be an inefficient use of public money. If policy makers want to increase municipal income or inbound migration, they should engage themselves in developing more appropriate strategies.

Suggested Citation

  • Storm, Rasmus K. & Thomsen, Frederik & Jakobsen, Tor Georg, 2017. "Do they make a difference? Professional team sports clubs’ effects on migration and local growth: Evidence from Denmark," Sport Management Review, Elsevier, vol. 20(3), pages 285-295.
    • Handle: RePEc:eee:spomar:v:20:y:2017:i:3:p:285-295
    DOI: 10.1016/j.smr.2016.09.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1441352316300572
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.smr.2016.09.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carlino, Gerald & Coulson, N. Edward, 2006. "Compensating differentials and the social benefit of the NFL: Reply," Journal of Urban Economics, Elsevier, vol. 60(1), pages 132-138, July.
    2. Wladimir Andreff, 2015. "Disequilibrium Sports Economics: Competitive Imbalance and Budget Constraints," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01305633, HAL.
    3. Georgios Kavetsos, 2012. "National Pride: War Minus the Shooting," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 106(1), pages 173-185, March.
    4. Carlino, Gerald & Coulson, N. Edward, 2004. "Compensating differentials and the social benefits of the NFL," Journal of Urban Economics, Elsevier, vol. 56(1), pages 25-50, July.
    5. Pamela Wicker & Joachim Prinz & Tassilo von Hanau, 2012. "Estimating the value of national sporting success," Sport Management Review, Taylor & Francis Journals, vol. 15(2), pages 200-210, April.
    6. Helms, L Jay, 1985. "The Effect of State and Local Taxes on Economic Growth: A Time Series-Cross Section Approach," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 574-582, November.
    7. Andy Barlow & David Forrest, 2015. "Benefits to their Communities from Small Town Professional Football Clubs," National Institute Economic Review, National Institute of Economic and Social Research, vol. 232(1), pages 18-29, May.
    8. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1999. "Geography and Economic Development," International Regional Science Review, , vol. 22(2), pages 179-232, August.
    9. Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Econ Journal Watch, Econ Journal Watch, vol. 5(3), pages 294-315, September.
    10. Wladimir Andreff, 2015. "Governance of Professional Team Sports Clubs: Agency Problem and Soft Budget Constraint," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01305679, HAL.
    11. Robert A. Baade & Robert Baumann & Victor A. Matheson, 2008. "Selling the Game: Estimating the Economic Impact of Professional Sports through Taxable Sales," Southern Economic Journal, John Wiley & Sons, vol. 74(3), pages 794-810, January.
    12. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
    13. Thomas Peeters & Victor Matheson & Stefan Szymanski, 2014. "Tourism and the 2010 World Cup: Lessons for Developing Countries," Journal of African Economies, Centre for the Study of African Economies, vol. 23(2), pages 290-320.
    14. Gallup, John L. & Sachs, Jeffrey D. & Mellinger, Andrew, "undated". "Geography and Economic Development," Instructional Stata datasets for econometrics geodata, Boston College Department of Economics.
    15. Andrew Zimbalist, 2003. "Sport as Business," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 503-511, Winter.
    16. Coates, Dennis & Humphreys, Brad R. & Zimbalist, Andrew, 2006. "Compensating differentials and the social benefits of the NFL: A comment," Journal of Urban Economics, Elsevier, vol. 60(1), pages 124-131, July.
    17. Kaveephong Lertwachara & James J. Cochran, 2007. "An Event Study of the Economic Impact of Professional Sport Franchises on Local U.S. Economies," Journal of Sports Economics, , vol. 8(3), pages 244-254, June.
    18. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 01A, Center for International Development at Harvard University.
    19. Tim Pawlowski & Paul Downward & Simona Rasciute, 2014. "Does national pride from international sporting success contribute to well-being? An international investigation," Sport Management Review, Taylor & Francis Journals, vol. 17(2), pages 121-132, April.
    20. Robert A. Baade & Victor A. Matheson, 2016. "Going for the Gold: The Economics of the Olympics," Journal of Economic Perspectives, American Economic Association, vol. 30(2), pages 201-218, Spring.
    21. Pamela Wicker & John C. Whitehead & Bruce K. Johnson & Daniel S. Mason, 2016. "Willingness-To-Pay For Sporting Success Of Football Bundesliga Teams," Contemporary Economic Policy, Western Economic Association International, vol. 34(3), pages 446-462, July.
    22. Gallup, John & Sachs, Jeffrey, 1999. "Geography and Economic Development," Harvard Institute for International Development (HIID) Papers 294434, Harvard University, Kennedy School of Government.
    23. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
    24. Bent Flyvbjerg & Allison Stewart & Alexander Budzier, 2016. "The Oxford Olympics Study 2016: Cost and Cost Overrun at the Games," Papers 1607.04484, arXiv.org.
    25. Robert A. Baade & Victor A. Matheson, 2001. "Home Run or Wild Pitch?," Journal of Sports Economics, , vol. 2(4), pages 307-327, November.
    26. Wladimir Andreff, 2015. "Disequilibrium Sports Economics: Competitive Imbalance and Budget Constraints," Post-Print hal-01305633, HAL.
    27. Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
    28. Robert A. Baade & Richard F. Dye, 1988. "Sports Stadiums and Area Development: A Critical Review," Economic Development Quarterly, , vol. 2(3), pages 265-275, August.
    29. repec:rre:publsh:v:33:y:2003:i:2:p:229-53 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brachert, Matthias, 2020. "Regional effects of professional sports franchises: causal evidence from four European football leagues," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Latest Ar, pages 1-12.
    2. Matthias Brachert, 2021. "Regional effects of professional sports franchises: causal evidence from four European football leagues," Regional Studies, Taylor & Francis Journals, vol. 55(2), pages 295-306, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sylvie Démurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao & Gene Chang & Andrew Mellinger, 2002. "Geography, Economic Policy, and Regional Development in China," Asian Economic Papers, MIT Press, vol. 1(1), pages 146-197.
    2. Burhan Can Karahasan & Firat Bilgel, 2018. "Economic Geography, Growth Dynamics and Human Capital Accumulation in Turkey: Evidence from Regional and Micro Data," Working Papers 1233, Economic Research Forum, revised 10 Oct 2018.
    3. Oasis Kodila-Tedika & Simplice A. Asongu, 2015. "The Effect of Intelligence on Financial Development: A Cross-Country Comparison," Research Africa Network Working Papers 15/002, Research Africa Network (RAN).
    4. Rhys Andrews & Malcolm J. Beynon, 2019. "Configurational Analysis of Access to Basic Infrastructure Services: Evidence from Turkish Provinces," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1341-1370, December.
    5. You, Jong-Sung & Khagram, Sanjeev, 2004. "Inequality and Corruption," Working Paper Series rwp04-001, Harvard University, John F. Kennedy School of Government.
    6. Natalia Zugravu-Soilita, 2019. "Trade in Environmental Goods and Air Pollution: A Mediation Analysis to Estimate Total, Direct and Indirect Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1125-1162, November.
    7. James B. Ang, 2015. "Agricultural Legacy, Individualistic Culture, and Techology Adoption," Economic Growth Centre Working Paper Series 1506, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    8. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    9. Hussien, Abdurohman & Ahmed, Shakeel & Yousaf, Muhammed, 2012. "Does Trade Policy Explain Total Factor Productivity Differences Across Countries?," MPRA Paper 86594, University Library of Munich, Germany.
    10. Olivier Parent & Abdallah Zouache, 2009. "Geographical Features vs. Institutional Factors: New Perspectives on The Growth of Africa and Middle-East," Working Papers 490, Economic Research Forum, revised Jun 2009.
    11. Rodríguez-Pose, Andrés & Ketterer, Tobias, 2016. "Institutions vs. ‘First-Nature’ Geography – What Drives Economic Growth in Europe’s Regions?," CEPR Discussion Papers 11322, C.E.P.R. Discussion Papers.
    12. Dao, Thu Hien & Docquier, Frédéric & Parsons, Chris & Peri, Giovanni, 2018. "Migration and development: Dissecting the anatomy of the mobility transition," Journal of Development Economics, Elsevier, vol. 132(C), pages 88-101.
    13. Naritomi, Joana & Soares, Rodrigo R. & Assunção, Juliano J., 2012. "Institutional Development and Colonial Heritage within Brazil," The Journal of Economic History, Cambridge University Press, vol. 72(2), pages 393-422, May.
    14. Mauricio Cárdenas, 2007. "Economic Growth in Colombia : a reversal of "fortune"?," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 25(53), pages 220-259, January.
    15. Galor, Oded & Ashraf, Quamrul, 2008. "Human Genetic Diversity and Comparative Economic Development," CEPR Discussion Papers 6824, C.E.P.R. Discussion Papers.
    16. James C. Rockey, 2007. "Which Democracies Pay Higher Wages?," Bristol Economics Discussion Papers 07/600, School of Economics, University of Bristol, UK.
    17. Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2006. "Investment climate and international integration," World Development, Elsevier, vol. 34(9), pages 1498-1516, September.
    18. Cristina Cattaneo, 2009. "International Migration, the Brain Drain and Poverty: A Cross‐country Analysis," The World Economy, Wiley Blackwell, vol. 32(8), pages 1180-1202, August.
    19. Braunfels, Elias, 2016. "Further Unbundling Institutions," Discussion Paper Series in Economics 13/2016, Norwegian School of Economics, Department of Economics.
    20. Soo, Kwok Tong, 2005. "Zipf's Law for cities: a cross-country investigation," Regional Science and Urban Economics, Elsevier, vol. 35(3), pages 239-263, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:spomar:v:20:y:2017:i:3:p:285-295. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.