Localization Economies and Firm Productivity: Evidence from Football Teams in Sao Paulo, Brazil

53 Pages Posted: 20 Aug 2020

See all articles by Brad R. Humphreys

Brad R. Humphreys

West Virginia University - Department of Economics

Amir B. Ferreira Neto

Florida Gulf Coast University

Date Written: July 18, 2020

Abstract

Agglomeration economies affect urban economic outcomes. We analyze variation in sports team productivity and localization of teams across divisions and cities in Campeonato Paulista an annual football competition in Sao Paulo state, Brazil, exploiting plausibly exogenous variation in localization generated by a promotion and relegation system in this league. Results show that both urbanization, proxied by population, and localization affects short and long run team productivity. These results provide new evidence on the importance of localization economies in the urban economy in developing countries and shed light on why sports teams in larger cities enjoy more success than those in smaller cities.

Keywords: Agglomeration, Urbanization, Localization, Sports League Outcomes, Elo Rankings

JEL Classification: R12, Z21

Suggested Citation

Humphreys, Brad R. and Borges Ferreira Neto, Amir, Localization Economies and Firm Productivity: Evidence from Football Teams in Sao Paulo, Brazil (July 18, 2020). Available at SSRN: https://ssrn.com/abstract=3655180 or http://dx.doi.org/10.2139/ssrn.3655180

Brad R. Humphreys (Contact Author)

West Virginia University - Department of Economics ( email )

Morgantown, WV 26506
United States

Amir Borges Ferreira Neto

Florida Gulf Coast University ( email )

Lutgert College of Business
10501 FGCU Boulevard South
Fort Myers, FL 33965-6565
United States
33965-6565 (Fax)

HOME PAGE: http://www.amirneto.com

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