IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v151y2020i3d10.1007_s11205-020-02410-y.html
   My bibliography  Save this article

The Political Economy of Football: Democracy, Income Inequality, and Men’s National Football Performance

Author

Listed:
  • Kin-Man Wan

    (Chinese University of Hong Kong)

  • Ka-U Ng

    (McGill University)

  • Thung-Hong Lin

    (Academia Sinica)

Abstract

The reasons why some countries outperform others in international football games warrant exploration. In this article, we argue that the synergy of economic development, democratic experience, football association duration, and low income inequality improves the performance of men’s national football teams. Contemporary professional football is a typical “club good” that encourages members to act collectively by watching games, organizing associations, and investing in talent and capital for team success. We hypothesize that economic development sustains professional football, particularly in democratic regimes that allow collective action through football associations. Wealthy democracies most effectively shape institutional incentives that improve the transparency, fairness, and competitiveness of leagues and contribute to their prosperity, benefiting the talent pool for national football teams. In addition, income inequality excludes the talents from the poor and reduces national football performance. We used panel data from 119 countries for the period from 1999 to 2014 as well as fixed-effects models to verify our hypotheses. The result confirms that democracy improves national football performance. During this period, for instance, Panama, a young democracy, got 13.2% increase in estimated ln FIFA scores. By contrast, Thailand, becoming autocracy in 2007, experienced 12.6% decrease in estimated ln FIFA scores. Democracy stock also moderated the effects of a long football association history to improve national football performance. In addition, reduced income inequality increased performance.

Suggested Citation

  • Kin-Man Wan & Ka-U Ng & Thung-Hong Lin, 2020. "The Political Economy of Football: Democracy, Income Inequality, and Men’s National Football Performance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(3), pages 981-1013, October.
  • Handle: RePEc:spr:soinre:v:151:y:2020:i:3:d:10.1007_s11205-020-02410-y
    DOI: 10.1007/s11205-020-02410-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-020-02410-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11205-020-02410-y?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. Velema, Thijs A., 2019. "Upward and downward job mobility and player market values in contemporary European professional football," Sport Management Review, Elsevier, vol. 22(2), pages 209-221.
    2. Dolan, Paul & Kavetsos, Georgios & Krekel, Christian & Mavridis, Dimitris & Metcalfe, Robert & Senik, Claudia & Szymanski, Stefan & Ziebarth, Nicolas R., 2019. "Quantifying the intangible impact of the Olympics using subjective well-being data," Journal of Public Economics, Elsevier, vol. 177(C), pages 1-1.
    3. Ran Zhou & Kyriaki Kaplanidou, 2018. "Building social capital from sport event participation: An exploration of the social impacts of participatory sport events on the community," Sport Management Review, Taylor & Francis Journals, vol. 21(5), pages 491-503, December.
    4. Garry A. Gelade & Paul Dobson, 2007. "Predicting the Comparative Strengths of National Football Teams," Social Science Quarterly, Southwestern Social Science Association, vol. 88(1), pages 244-258, March.
    5. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
    6. Wladimir Andreff, 2018. "Financial and Sporting Performance in French Football Ligue 1: Influence on the Players’ Market," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03206972, HAL.
    7. Bruce Bueno de Mesquita & Alastair Smith & Randolph M. Siverson & James D. Morrow, 2005. "The Logic of Political Survival," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262524406, December.
    8. Wladimir Andreff, 2001. "The Correlation between Economic Underdevelopment and Sport," Post-Print halshs-00274657, HAL.
    9. Robert Hoffmann & Lee Chew Ging & Victor Matheson & Bala Ramasamy, 2006. "International women's football and gender inequality," Applied Economics Letters, Taylor & Francis Journals, vol. 13(15), pages 999-1001.
    10. Melanie Krause & Stefan Szymanski, 2019. "Convergence versus the middle-income trap: the case of global soccer," Applied Economics, Taylor & Francis Journals, vol. 51(27), pages 2980-2999, June.
    11. Wladimir Andreff, 2007. "French Football: A Financial Crisis Rooted in Weak Governance," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00270019, HAL.
    12. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    13. Daniel Weimar & Pamela Wicker, 2017. "Moneyball Revisited," Journal of Sports Economics, , vol. 18(2), pages 140-161, February.
    14. Wladimir Andreff, 2014. "Building Blocks for a Disequilibrium Model of a European Team Sports League," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01243716, HAL.
    15. Wladimir Andreff, 2007. "French Football: A Financial Crisis Rooted in Weak Governance," Post-Print halshs-00270019, HAL.
    16. Joshua Congdon-Hohman & Victor A. Matheson, 2013. "International women’s soccer and gender inequality: revisited," Chapters, in: Eva Marikova Leeds & Michael A. Leeds (ed.), Handbook on the Economics of Women in Sports, chapter 16, pages 345-364, Edward Elgar Publishing.
    17. Wladimir Andreff, 2018. "Financial and Sporting Performance in French Football Ligue 1: Influence on the Players’ Market," IJFS, MDPI, vol. 6(4), pages 1-17, November.
    18. Ulrich Kohler & Kristian Bernt Karlson & Anders Holm, 2011. "Comparing coefficients of nested nonlinear probability models," Stata Journal, StataCorp LP, vol. 11(3), pages 420-438, September.
    19. Roberto Gásquez & Vicente Royuela, 2014. "Is Football an Indicator of Development at the International Level?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 827-848, July.
    20. Wladimir Andreff, 2014. "Building Blocks for a Disequilibrium Model of a European Team Sports League," Post-Print halshs-00971782, HAL.
    21. Ignacio Lago & Carlos Lago-Peñas & Santiago Lago-Peñas, 2016. "Democracy and Football," Social Science Quarterly, Southwestern Social Science Association, vol. 97(5), pages 1282-1294, November.
    22. Roberto Gásquez & Vicente Royuela, 2016. "The Determinants of International Football Success: A Panel Data Analysis of the Elo Rating," Social Science Quarterly, Southwestern Social Science Association, vol. 97(2), pages 125-141, June.
    23. Nicolas Scelles & Wladimir Andreff, 2019. "Determinants of national men's football team performance: a focus on goal difference between teams," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03206966, HAL.
    24. Robert Hoffmann & Lee Chew Ging & Bala Ramasamy, 2002. "Public policy and olympic success," Applied Economics Letters, Taylor & Francis Journals, vol. 9(8), pages 545-548.
    25. Vicente Royuela & Roberto Gásquez, 2019. "On the Influence of Foreign Players on the Success of Football Clubs," Journal of Sports Economics, , vol. 20(5), pages 718-741, June.
    26. Rohde, Marc & Breuer, Christoph, 2018. "Competing by investments or efficiency? Exploring financial and sporting efficiency of club ownership structures in European football," Sport Management Review, Elsevier, vol. 21(5), pages 563-581.
    27. Yue, Jiahua & Zhou, Shangsi, 2018. "Democracy’s comparative advantage: Evidence from aggregated trade data, 1962–2010," World Development, Elsevier, vol. 111(C), pages 27-40.
    28. Przeworski,Adam & Alvarez,Michael E. & Cheibub,Jose Antonio & Limongi,Fernando, 2000. "Democracy and Development," Cambridge Books, Cambridge University Press, number 9780521793797, November.
    29. Bernd Frick, 2007. "The Football Players' Labor Market: Empirical Evidence From The Major European Leagues," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 422-446, July.
    30. Markus Lang & Martin Grossmann & Philipp Theiler, 2011. "The Sugar Daddy Game: How Wealthy Investors Change Competition in Professional Team Sports," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 167(4), pages 557-577, December.
    31. Anbarci, Nejat & Escaleras, Monica & Register, Charles A., 2005. "Earthquake fatalities: the interaction of nature and political economy," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1907-1933, September.
    32. Eva Marikova Leeds & Michael A. Leeds (ed.), 2013. "Handbook on the Economics of Women in Sports," Books, Edward Elgar Publishing, number 14272.
    33. Robert Hoffmann & Lee Chew Ging & Bala Ramasamy, 2002. "The Socio-Economic Determinants of International Soccer Performance," Journal of Applied Economics, Taylor & Francis Journals, vol. 5(2), pages 253-272, November.
    34. Przeworski,Adam & Alvarez,Michael E. & Cheibub,Jose Antonio & Limongi,Fernando, 2000. "Democracy and Development," Cambridge Books, Cambridge University Press, number 9780521790321, November.
    35. Frederick Solt, 2016. "The Standardized World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 97(5), pages 1267-1281, November.
    36. Stefan Szymanski, 2010. "Football Economics and Policy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-27426-6.
    37. Kavetsos, Georgios & Szymanski, Stefan, 2010. "National well-being and international sports events," Journal of Economic Psychology, Elsevier, vol. 31(2), pages 158-171, April.
    38. Marc Rohde & Christoph Breuer, 2016. "Europe’s Elite Football: Financial Growth, Sporting Success, Transfer Investment, and Private Majority Investors," IJFS, MDPI, vol. 4(2), pages 1-20, June.
    39. Heather Mitchell & Mark Stewart, 2007. "A competitive index for international sport," Applied Economics, Taylor & Francis Journals, vol. 39(5), pages 587-603.
    40. Michael A. Leeds & Eva Marikova Leeds, 2009. "International Soccer Success and National Institutions," Journal of Sports Economics, , vol. 10(4), pages 369-390, August.
    41. Matthew A. Baum & David A. Lake, 2003. "The Political Economy of Growth: Democracy and Human Capital," American Journal of Political Science, John Wiley & Sons, vol. 47(2), pages 333-347, April.
    42. Wladimir Andreff, 2014. "Building Blocks for a Disequilibrium Model of a European Team Sports League," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00971782, HAL.
    43. Brown, David S. & Mobarak, Ahmed Mushfiq, 2009. "The Transforming Power of Democracy: Regime Type and the Distribution of Electricity," American Political Science Review, Cambridge University Press, vol. 103(2), pages 193-213, May.
    44. Nicolas Scelles & Wladimir Andreff, 2019. "Determinants of national men's football team performance: a focus on goal difference between teams," Post-Print hal-03206966, HAL.
    45. Frederick Solt, 2009. "Standardizing the World Income Inequality Database," LIS Working papers 496, LIS Cross-National Data Center in Luxembourg.
    46. King, Gary & Honaker, James & Joseph, Anne & Scheve, Kenneth, 2001. "Analyzing Incomplete Political Science Data: An Alternative Algorithm for Multiple Imputation," American Political Science Review, Cambridge University Press, vol. 95(1), pages 49-69, March.
    47. Baimbridge, Mark & Cameron, Samuel & Dawson, Peter, 1996. "Satellite Television and the Demand for Football: A Whole New Ball Game?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(3), pages 317-333, August.
    48. Ulrich Kohler, 2011. "Comparing coefficients between nested nonlinear probability models," German Stata Users' Group Meetings 2011 08, Stata Users Group.
    49. Frederick Solt, 2009. "Standardizing the World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 90(2), pages 231-242, June.
    50. Zhang, Lei, 2008. "Political economy of income distribution dynamics," Journal of Development Economics, Elsevier, vol. 87(1), pages 119-139, August.
    51. Frank Butter & Casper Tak, 1995. "Olympic medals as an indicator of social welfare," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 35(1), pages 27-37, May.
    52. Peter Macmillan & Ian Smith, 2007. "Explaining International Soccer Rankings," Journal of Sports Economics, , vol. 8(2), pages 202-213, May.
    53. Sen, Amartya, 1988. "Freedom of choice : Concept and content," European Economic Review, Elsevier, vol. 32(2-3), pages 269-294, March.
    54. Wladimir Andreff, 2018. "Financial and Sporting Performance in French Football Ligue 1: Influence on the Players’ Market," Post-Print hal-03206972, HAL.
    55. Lipscy, Phillip Y., 2018. "Democracy and Financial Crisis," International Organization, Cambridge University Press, vol. 72(4), pages 937-968, October.
    56. Andrew B. Bernard & Meghan R. Busse, 2004. "Who Wins the Olympic Games: Economic Resources and Medal Totals," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 413-417, February.
    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. Javier Cifuentes‐Faura, 2022. "Efficiency and transparency of Spanish football clubs: A non‐parametric approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1850-1860, September.

    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. Vicente Royuela & Roberto Gásquez, 2019. "On the Influence of Foreign Players on the Success of Football Clubs," Journal of Sports Economics, , vol. 20(5), pages 718-741, June.
    2. Wong, Mathew Y.H., 2021. "Democracy, hybrid regimes, and inequality: The divergent effects of contestation and inclusiveness," World Development, Elsevier, vol. 146(C).
    3. Richau, Lukas & Follert, Florian & Frenger, Monika & Emrich, Eike, 2021. "The Rainmaker?! The impact of investors on transfer fees in the English Premier League," Working Paper 187/2021, Helmut Schmidt University, Hamburg.
    4. Roberto Gásquez & Vicente Royuela, 2016. "The Determinants of International Football Success: A Panel Data Analysis of the Elo Rating," Social Science Quarterly, Southwestern Social Science Association, vol. 97(2), pages 125-141, June.
    5. Marc Rohde & Christoph Breuer, 2018. "Competing by investments or efficiency? Exploring financial and sporting efficiency of club ownership structures in European football," Sport Management Review, Taylor & Francis Journals, vol. 21(5), pages 563-581, December.
    6. Frank Daumann & Florian Follert & Daniel Hamacher & Lasse Plöhn, 2023. "The early bird catches the worm: The impact of first‐mover advantage on long‐term elite team sport success," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1465-1475, April.
    7. Meshael Batarfi & James Reade, 2021. "Why are We So Good At Football, and They So Bad? Institutions and National Footballing Performance," De Economist, Springer, vol. 169(1), pages 63-80, February.
    8. Bredtmann, Julia & Crede, Carsten J. & Otten, Sebastian, 2014. "The Effect of Gender Equality on International Soccer Performance," Ruhr Economic Papers 501, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Havran, Zsolt & András, Krisztina, 2022. "A puha költségvetési korlát szindrómája a hivatásos labdarúgásban. Kitekintés a nemzetközi és a magyarországi sajátosságokra [The soft-budget constraint in professional football syndrome. A view of," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 230-254.
    10. Kammas, Pantelis & Sarantides, Vassilis, 2019. "Do dictatorships redistribute more?," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 176-195.
    11. repec:zbw:rwirep:0501 is not listed on IDEAS
    12. repec:lic:licosd:26510 is not listed on IDEAS
    13. Wladimir Andreff & Madeleine Andreff, 2015. "Economic prediction of sport performances from the Beijing Olympics to the 2010 FIFA World Cup in South Africa: the notion of surprising sporting outcomes," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01244495, HAL.
    14. Wladimir Andreff, 2018. "Financial and Sporting Performance in French Football Ligue 1: Influence on the Players’ Market," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03206972, HAL.
    15. Wladimir Andreff, 2014. "The Winner's Curse in Sports Economics," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01243890, HAL.
    16. Berlinschi, Ruxanda & Schokkaert, Jeroen & Swinnen, Johan, 2013. "When drains and gains coincide: Migration and international football performance," Labour Economics, Elsevier, vol. 21(C), pages 1-14.
    17. Seo-Young Cho, 2013. "A League of Their Own: Female Soccer, Male Legacy and Women's Empowerment," Discussion Papers of DIW Berlin 1267, DIW Berlin, German Institute for Economic Research.
    18. David Butler & Robert Butler & Justin Doran & Sean O’Connor, 2018. "Explaining international footballer selection through Poisson modelling," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 45(2), pages 296-306, May.
    19. Wladimir Andreff, 2018. "Financial and Sporting Performance in French Football Ligue 1: Influence on the Players’ Market," Post-Print hal-03206972, HAL.
    20. Wladimir Andreff, 2014. "The Winner's Curse in Sports Economics," Post-Print halshs-01243890, HAL.
    21. Pablo Castellanos García & Jesús A. Dopico Castro & José M. Sánchez Santos, 2007. "The economic geography of football success: empirical evidence from european cities," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 3(2), pages 67-88, Settembre.

    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:spr:soinre:v:151:y:2020:i:3:d:10.1007_s11205-020-02410-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.