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What does Germany expect to gain from hosting the 2006 Football World Cup – Macroeconomic and Regionaleconomic Effects

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  • Gerd Ahlert

    (GWS - Institute of Economic Structures Research)

Abstract

The paper will present some estimates of the potential macro- and regionaleconomic effects for the German economy from hosting the football world cup 2006. The results have been prepared in the years 2000 and 2001 using the sport-economic simulation model SPORT (Ahlert 2001). The model has a special focus on analyzing sport-economic activities and has been constructed within the framework of a research project financed by the Ministry of the Interior (Meyer & Ahlert, 2000). It is based on a sport-economic satellite account - a detailed sport-economic database in conformity with concepts and definitions of the S.A - which has been integrated into the German I.FORGE model. Its performance is founded on the I.FORUM philosophy (Almon 1991). The simulation results are based on a szenario which take into account the necessary investments for upgrading the stadium facilities in the venues of the event as well as the tourism expenditure of incoming world cup visitors during the event in 2006. The results will illustrate the importance of modelling sport-economic activities in deep sectoral and intertemporal detail. Besides the macroeconomic national effects, the paper explains, how these effects can be transmitted to the regional level of the German federal state level by the econometric model system LÄNDER. This model system is founded on the national accounts for Länder and specifies the economic development of every single of the 16 federal states in the context of the expected macroeconomic development calculated within the SPORT model on the national level (Meyer & Ahlert 2003). The results will show that it is possible to estimale the potential macroeconomic effects of the soccer World Cup 2006 on the national and regional level. Under favourable conditions - independent of the type of financing these necessary investments - the staging of the football World Cup positively influences income and employment.

Suggested Citation

  • Gerd Ahlert, 2005. "What does Germany expect to gain from hosting the 2006 Football World Cup – Macroeconomic and Regionaleconomic Effects," GWS Discussion Paper Series 05-4, GWS - Institute of Economic Structures Research.
    • Handle: RePEc:gws:dpaper:05-4
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    References listed on IDEAS

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    1. Gerd Ahlert, 2001. "The Economic Effects of the Soccer World Cup 2006 in Germany with Regard to Different Financing," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 109-127.
    2. Gerd Ahlert, 2003. "Einführung eines Tourismussatellitensystems in Deutschland," GWS Discussion Paper Series 03-4, GWS - Institute of Economic Structures Research.
    3. Gerd Ahlert, 2004. "TSA for Germany: database of the satellite account and perspectives for integration into a sectoral disaggregated macro-econometric model," GWS Discussion Paper Series 04-3, GWS - Institute of Economic Structures Research.
    4. Gerd Ahlert, 2004. "Investive Sportförderung in der Bundesrepublik – Ökonomische Impulse eines öffentlich finanzierten Infrastrukturprogramms zur Sanierung und Modernisierung der Sportstätten," GWS Discussion Paper Series 04-2, GWS - Institute of Economic Structures Research.
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    Cited by:

    1. Vöpel, Henning, 2014. "Olympische Spiele in Hamburg - produktive Vision oder teure Fiktion? Regionalwirtschaftliche und standortpolitische Chancen und Risiken einer Bewerbung Hamburgs für die Ausrichtung Olympischer Spiele," HWWI Policy Papers 84, Hamburg Institute of International Economics (HWWI).
    2. Gerd Ahlert, 2007. "Assessing the Impact of the FIFA World Cup Germany 2006TM – Some Methodological and Empirical Reflections," GWS Discussion Paper Series 07-6, GWS - Institute of Economic Structures Research.
    3. Filip, Marcin, 2012. "Gospodarcze efekty organizacji we Wrocławiu Mistrzostw Europy w piłce nożnej UEFA EURO 2012™ [Economic impacts of UEFA Euro 2012 staging in Wroclaw]," MPRA Paper 58207, University Library of Munich, Germany.
    4. Ahlfeldt Gabriel M. & Maennig Wolfgang & Scholz Hanno, 2010. "Erwartete externe Effekte und Wahlverhalten: Das Beispiel der Münchner Allianz-Arena / Expected External Effects and Voting: The Case of the Munich Allianz-Arena," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(1), pages 2-26, February.
    5. Gabriel Ahlfeldt & Wolfgang Maennig, 2010. "Stadium Architecture and Urban Development from the Perspective of Urban Economics," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 629-646, September.
    6. Vöpel, Henning, 2006. "Wirtschaftsfaktor Fußball," HWWI Policy Reports 2, Hamburg Institute of International Economics (HWWI).
    7. Joanna Kude³ko & Zbigniew Mogi³a & Aleksandra Poproch, 2012. "Euro 2012 in Poland - facts and myths about its importance for the development of the host regions in the context of the counterfactual analysis," ERSA conference papers ersa12p752, European Regional Science Association.

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    More about this item

    Keywords

    Germany; Football World Cup 2006; Macroeconomic and Regionaleconomic Effects;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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