| With Italy's socking win to become the world's best | | | | have seen a gain of about 10% for the World Cup |
| soccer team, it seems prudent to discuss something | | | | champions and a loss of about 25% on average for |
| that is not usually connected with soccer: the | | | | the losing team. This growth is not uncommon, says |
| economy. | | | | van Leeuween and Kalshhoven as they have seen on |
| It may seem strange, but many say it is true, that | | | | averaged a 10% gain for the World Cup champions |
| the outcome of this super sports event dictates the | | | | and 25% loss for the losing team (Kalshoven and |
| economic future of the participating teams and in | | | | Van Leeuwen). |
| turn, the world. It has been researched, and evidence | | | | Before the beginning of the Cup, Brazil and England |
| has been found, to hypothesize the winners of the | | | | were the favorites, but with these two already out it |
| World Cup can expect to have a small boost in their | | | | is hard to tell who will be gaining that economic boost. |
| finances as a result of the win. In "Soccer and the | | | | Germany, as the host country, has put more than |
| Economy: March 2006 Edition", Ruben van Leeuwen | | | | $350 million into transportation improvements for the |
| and Charles Kalshoven discussed this phenomenon. In | | | | Cup and in total $1.7 billion to improve stadiums |
| their document van Leeuween and Kalshoven look to | | | | (Higginson). Since they have put so much in, it may |
| a study conducted to the Algemene Bank Nederland | | | | be safe to say Germany deserves this win. Also, |
| (ABN) and the Amsterdamsche-Rotterdamsche Bank | | | | Germany has fallen on economic hard times, making a |
| (AMRO) showing that the winning countries tend to | | | | win highly beneficial to not only the economic state |
| see a 0.7% increase in their market. Most of this | | | | of the country but the psychological state as well. |
| increase is contributed to the positive energy | | | | However, on Sunday Germany's dreams were |
| generated in a country from a win. A win at the | | | | dashed by a stellar overtime performance by the |
| World Cup causes a whole country to feel pride and | | | | Italian team. However, Germany is not totally |
| happiness, and happy people just love to buy. Plus, | | | | discouraged as it expects at least a 1.6% increase in |
| parties to celebrate the win will generate revenue | | | | its GNP due only to the revenue generated from |
| and work, especially in bars and supermarkets. | | | | being a host country. Plus, the new jobs created by |
| Another means of economic growth come from the | | | | this opportunity have led to an 11% increase in |
| sale of souvenirs commemorating the big win. Finally, | | | | Germany's unemployment rate (Drew). |
| a country that wins the World Cup is recognized by | | | | It shall remain to be seen whether or not Italy has |
| the whole world because of its achievement. This | | | | the economic golden egg hidden under the title of |
| recognition may open up new trade opportunities and | | | | World Cup Champion, but at least it is sure they have |
| make businesses more inclined to invest in the | | | | the respect of the world (a maybe a bruised |
| country (Kalshoven and Van Leeuwen). | | | | sternum). The next World Cup is not set to be |
| In 2002, .3 billion people watched the World Cup Final | | | | played until summer 2010, when it will be hosted by |
| in Japan, and this number is predicted to be much | | | | South Africa. |
| higher in Berlin (Unknown). This amount of publicity | | | | Works Cited |
| certainly helps stimulate the economy in general, but | | | | Drew, Catherine. "VOA News-German Businesses |
| past wins reflect that the theory that economic | | | | Await Economic Effects of World |
| growth and World Cup champions go hand in hand. | | | | Cup." News VOA. 8 June 2006. 28 June 2006 |
| According to van Leeuween and Kalshoven, there | | | | Higginson, Matthew. "Financial Goals: the Wealth |
| have only been two exceptions to this theory since | | | | Behind the World Cup." TMCNet. 12 |
| 1970: in 1974 and 1978. In these two years, the | | | | June 2006. Technology Marketing Corporation. 28 |
| German ('74) and Argentine ('78) economy declined, | | | | June 2006 |
| however the economy of the losing finalist both | | | | Kalshoven, Charles, and Ruben Van Leeuwen. |
| years, the Netherlands, had a far greater loss. | | | | Netherlands. ABN AMRO. Soccernomics |
| However, in 1988 the Netherlands finally had its | | | | 2006: Soccer and the Economy. 22 Mar. 2006. 28 |
| victory and its economic growth. IN this year the | | | | June 2006 |
| Amsterdam stock market gained 29% more than it | | | | Unknown."World Cup 2006-Private Sector |
| did the previous year. Van Leeuween and Kalshoven | | | | Development- the World Bank Group. |