Does FIFA bring an economic upturn in countries hosting the world cup Essay

Does FIFA bring an economic upturn in countries hosting the world cup - Essay Example world Cup was estimated to have added the GDP to Brazil of at least $ 30 billion, and (Baumann, Engelhardt & Matheson (2012), argues that the world cup results in temporary upsurge in real employment, while Pillay & Bass (2008) point out that perhaps they are motivated by the need to reduce poverty. There is a great debate on the real economic potential for the host nation of the FIFA World Cup; critics of its economic potential argue that the 32-day tournament results in costs that outweigh the real economic benefits (Lee & Taylor, 2005). Conversely, proponents point out that the tournament has an impressive quantifiable real economic plus to the economy (Baade, & Matheson, 2004). Obviously, high number of travelling fans contributes to tourism, which will ead to sufficient infrastructures, security as well as the boost of morale brought by the good feeling of hosting the World Cup (Crnelissen, 2014). At the end of 2010 the organization had generated 4.189 billion dollars and addition 3.6 billion dollars from World cup not directly related to world Cup (Federation Internationale de Football Association, 2007). This paper by concentrating on some of the most significant economic aspects that greatly contributes to the growth of a country (Andreff, 2012). The paper further relates these aspects to the World Cup and the impact it has on them. The paper is divided into three sections; theoretical framework, the methodology and the findings of the study. In this section, the paper proposes four major economic indicators, which are used to determine the upturn or downturn of an economy. Further, FIFA’s impact on the economy will be defined from point of view of these indicators. An intricate discussion on the four indicators shall ensue below in this section. A number of macroeconomic models have been proposed to be effective in the study of the real economic benefits of the FIFA World Cup to the host nation economy. Alhert (2001) used the input-output model to