Is football1 an indicator of development at the international level? Robert Gásquez Department of International Economics, University of Barcelona. Av. Diagonal, 690. 08034 - Barcelona, Spain. E-mail:
[email protected] Tel. (+34) 93 402 19 39 Vicente Royuela AQR-IREA Research Group, Departament d’Econometria, Estadística i Economia Espanyola, University of Barcelona, Av. Diagonal, 690. 08034 - Barcelona, Spain. E-mail:
[email protected] Tel. (+34) 93 403 57 32 Abstract: The aim of this paper is to examine whether football can be considered an indicator of development at the international level. An empirical econometric model is designed in order to analyse development in terms of both levels of GDP per capita and GDP growth. Cross- sectional and time series information is used. The results suggest that FIFA rankings of national teams can be used to complement our understanding of multidimensional development in those countries where the availability of information is not as good as researchers would like. Keywords: football, development, economic growth, international, instrumental variable JEL classification: C23, L83, O11 Acknowledgments We are grateful to anonymous referees for valuable comments. Roberto Ga´squez would like to thank Francisco Granell for his idea and Patricia Garcı´a-Dura´n for her support. Vicente Royuela acknowledges the support of ECO2010-16006. 1 Or soccer, depending on the culture and language in use. 1 Introduction The United Nations assumes that there is a relationship between sport and development: in 2001 the United Nations Office of Sport for Development and Peace (UNOSDP) was created. In the words of Ban Ki-moon, Secretary-General of the United Nations: “Sport has become a world language, a common denominator that breaks down all the walls, all the barriers.