| By: |
Ramos Mabugu (Financial and Fiscal Commission);
Ahmed Mohamed (IDASA) |
| Abstract: |
This paper presents estimates of the economic impacts of financing the hosting
of the 2010 FIFA World Cup by the government of South Africa. Ex ante analysis
using a fiscal social accounting matrix model indicates that hosting of the
event impacts positively on gross domestic product and imports. The positive
impact on imports will, inter alia, lead to deterioration in the current
account deficit for a given amount of exports. Owners of capital benefit more
than owners of labour as a result of 2010 FIFA World Cup expenditures by the
government. Middle-income Black households are the largest winners, followed
by high-income Whites. Asians experience the least gain. These outcomes are
explained by the initial factor endowments and their sectoral allocation in
the social accounting matrix. Government revenue goes up in response to the
demand injection, and a large proportion of it accrues to central government
and local government respectively. |
| Keywords: |
2010 FIFA World Cup, Economic Impact, SAM Modelling, Legacy, South Africa |
| JEL: |
C68 D58 L83 |
| Date: |
2008 |
| URL: |
http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers56&r=spo |