Celebration of Scholars
Economics of the FIFA World Cup: Whether Economic Development Affects Performance
Name:
Adam Milano
Major: Accounting and Finance
Hometown: Elgin, Illinois
Faculty Sponsor:
Other Sponsors:
Type of research: Independent research
Funding: N/A
Abstract
International sporting events bring countries together and promote goodwill, peace, trade. My research examines the relationship between economic strength of countries and their performance in the World Cup compared to the Olympic Games. Past research has shown that the Olympic Games favor more prosperous countries. I am examining whether less developed countries have a more even footing in the World Cup.I did statistical analysis
regressing the top 30 FIFA World cup teams with economic factors such as
population, GDP and GDP per capita.
My research shows that geography plays a large role and that economic development is not as strong of an influence in the World Cup compared the Olympic Games. It supports the importance of behavioral economics in that the proximity of a large fan base has a significant impact on results. Behavioral economics is a growing field: economic crises time and again have shown that models predicting movements in the economy solely based on rational behavior are flawed.
My work supports the need for adding a human element to research in economics and finance by exploring it on a very human, understandable, entertaining level. In short, money does not buy success in the World Cup.
Submit date: March 13, 2015, 1:27 p.m.