Baseball Player Exports and the Economic Performance of the Dominican Republic

29 Pages Posted: 16 Jul 2006

Date Written: 2006

Abstract

Backgorund: Ceteris paribus, foreign trade theory predicts a strong correlation between a country's exports and economic performance measured as per capita income. Indeed there is considerable empirical support for that prediction. While there exists widespread public enthusiasm and financial backing of sports activities (events and facilities), economic research finds a positive, but nonetheless statistically insignificant, impact of sports activities on local economies. Problem: For a baseball player-producing country like the Dominican Republic, what is the impact on the country's economy of its player exports to the USA? This paper addresses that question. Result: The analysis finds a strong correlation between baseball player exports and economic performance for the years 1962-2004, while the impact of non-baseball exports is generally weak, sometimes even negative, and statistically insignificant. These findings are invariant with respect to different linear functional forms. In fact, the impact of baseball exports on economic performance are even larger when one considers their indirect effect on economic performance. Conclusion: The policy implications are that (a) the Dominican Republic should continue producing baseball players for export to the USA, and (b) both the USA and the Dominican Republic should encourage baseball player trade and repatriation of baseball export earnings.

Keywords: baseball player exports, sports exports, sports and economic performance, export-led growth

JEL Classification: O40, L83, O54, F43, F14, R53

Suggested Citation

Amavilah, Voxi Heinrich S., Baseball Player Exports and the Economic Performance of the Dominican Republic (2006). Available at SSRN: https://ssrn.com/abstract=915817 or http://dx.doi.org/10.2139/ssrn.915817

Voxi Heinrich S. Amavilah (Contact Author)

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