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Localization Economies and Firm Productivity: Evidence from Football Teams in Sao Paulo, Brazil

Author

Listed:
  • Brad R. Humphreys

    (West Virginia University)

  • Amir B. Ferreira Neto

    (Florida Gulf Coast University)

Abstract

Agglomeration economies affect urban economic outcomes. We analyze variation in sports team productivity and localization of teams across divisions and cities in Campeonato Paulista an annual football competition in São Paulo state, Brazil, exploiting plausibly exogenous variation in localization generated by a promotion and relegation system in this league. Results show that both urbanization, proxied by population, and localization affects short and long run team productivity. These results provide new evidence on the importance of localization economies in the urban economy in developing countries and shed light on why sports teams in larger cities enjoy more success than those in smaller cities.

Suggested Citation

  • Brad R. Humphreys & Amir B. Ferreira Neto, 2020. "Localization Economies and Firm Productivity: Evidence from Football Teams in Sao Paulo, Brazil," Working Papers 20-09, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:20-09
    as

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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1047&context=econ_working-papers
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    More about this item

    Keywords

    Agglomeration; urbanization; localization; sports league outcomes; Elo rankings;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Z21 - Other Special Topics - - Sports Economics - - - Industry Studies

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