Outlands – Case Study on the 2014 FIFA World Cup in Brazil

Abstract

Was the 2014 FIFA World Cup a blessing or a curse for Brazil? And could the hosting states benefit from the tournament in an economic recession? This study investigates whether the World Cup was a catalyst for Brazil’s economic downturn, after a prosperous decade of poverty reduction, political recognition and event planning. Therefore, Brazil’s economic situation between 2002 – 2019 is investigated on different alternative aspects before turning an eye on the hosting of the World Cup and later on Summer Olympics. The results show a negative economic impact for the hosting states of the World Cup on the GDP per capita growth, especially in preparing (-6.9 percent) and processing the aftermath (-11.25 percent). But also, that the World Cup itself seems to have a positive component, while the Olympics constantly harm the regional economy (-16.91 percent). This further indicates that emerging markets should not host mega-sport events to achieve economic goals.