Andre Medina L&S Social Sciences
A Local Economic Analysis of the 2014 FIFA World Cup in Brazil
Does hosting the FIFA World Cup provide a genuine economic catalyst or merely a temporary spike followed by fiscal contraction? Economists continue to debate whether such large-scale public expenditure is justified: supporters argue local economic growth will be stimulated and jobs will be created, while critics contend that economic gains are temporary and insufficient to justify the public costs. This project utilizes a Difference-in-Differences (DiD) research design to compare 12 Brazilian host municipalities with 12 matched non-host control cities from 2010–2019. By analyzing log-transformed municipal GDP and employment data from the IBGE, I isolate the “World Cup effect” from broader macroeconomic shocks, such as Brazil’s 2015 recession. Preliminary findings suggest that while anticipatory investments boosted host economies leading up to 2014, these gains were short-lived, with employment levels regressing to pre-tournament trends. This study provides a critical framework for future host nations to evaluate the true opportunity costs and long-term regional impacts of hosting global sporting events.
Message To Sponsor
Thank you so much for your generous support in funding my summer research. I am truly grateful to apply the econometric skills I have developed at Berkeley toward a real-world study at the intersection of two of my passions: economics and soccer. Your investment is instrumental in my growth as a researcher, and I look forward to sharing my findings.