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162. Keeping One's Eye on the Ball: Exploring the Intensity of Sports Activities across Europe
- Author:
- Stuart Russell, Carla Tokman, Douglas Barrios, and Matt Andrews
- Publication Date:
- 07-2016
- Content Type:
- Working Paper
- Institution:
- The John F. Kennedy School of Government at Harvard University
- Abstract:
- As described in Russell, Barrios & Andrews (2016), past attempts to understand the sports economy have been constrained by a number of data limitations. For instance, many of these accounts use revenues when value added measures would be more appropriate. Similarly, many accounts use top-down definitions that result in double counting and an inflated estimate of the size of the sports economy. More importantly, past accounts have focused most of their efforts estimating the overarching size of the sports economy. Constrained by aggregated data that groups a wide range of sports-related economic activities together, they primarily discuss the size of the sports-related economic activity. Their focus on answering the question of "How big?" conceals substantial differences between activities. Core sports activities, such as professional sports teams, behave very differently than activities, like sporting goods manufacturing that are closer to the periphery of the sports economy. Likewise, there are even important differences amongst core sports activities. Professional sports teams are very different than fitness facilities, and they might differ in different respects. Guerra (2016) demonstrates that, when detailed, disaggregated data are available, the possibilities to analyze and understand the sports are greatly increased. For instance, Guerra (2016) were able to conduct skills-based analyses, magnitude analyses, employment characterizations, geographic distribution analyses, and calculations of the intensity of sports activities. The sector disaggregation, spatial disaggregation, and database complementarity present in the Mexico data used in that paper therefore enables a more detailed and nuanced understanding of sports and sports-related economic activity. Data with characteristics similar to those found in Mexico are few and far between. We have, unfortunately, been unable to completely escape such data limitations. However, we have compiled and analyzed a large array of employment data on sports-related economic activities in Europe. In the paper that follows, we describe our analyses of these data and the findings produced. Section 1 begins with a discussion of employment in sports and an explanation of why we chose this variable for our analyses. Section 2 provides an overview of the data used in this paper particularly focusing on the differences between it and the Mexico data discussed in Guerra (2016). It also describes the methodology we use. We analyze these data using one of two related measures to understand the intensity of sports-related activities across different geographic areas in countries. We also construct measures at the level of a single country in order to compare across entire economies. At the international level, we adopt the revealed comparative advantage (RCA) measure that Balassa (1965) first developed to analyze international trade. Within specific countries, however, we use a population-adjusted version of the RCA measure known as RPOP. Section 3 presents the most relevant findings and Section 4 discusses their limitations. Section 5 concludes with the lessons learned and avenues for future research. While there are limitations on these analyses, they can give policymakers a better understanding of the distribution and concentration of sports across space. Such information can serve as an important input for sports-related investment decisions and other sports-related policies.
- Topic:
- Employment, Sports, Economy, and International Development
- Political Geography:
- Europe, Central America, and European Union
163. Getting the Ball Rolling: Basis for Assessing the Sports Economy
- Author:
- Stuart Russell, Douglas Barrios, and Matt Andrews
- Publication Date:
- 07-2016
- Content Type:
- Working Paper
- Institution:
- The John F. Kennedy School of Government at Harvard University
- Abstract:
- Data on the sports economy is often difficult to interpret, far from transparent, or simply unavailable. Data fraught with weaknesses causes observers of the sports economy to account for the sector differently, rendering their analyses difficult to compare or causing them to simply disagree. Such disagreement means that claims regarding the economic spillovers of the industry can be easily manipulated or exaggerated. Thoroughly accounting for the industry is therefore an important initial step in assessing the economic importance of sports-related activities. For instance, what do policymakers mean when they discuss sports-related economic activities? What activities are considered part of the "sports economy?" What are the difficulties associated with accounting for these activities? Answering these basic questions allows governments to improve their policies. The paper below assesses existing attempts to understand the sports economy and proposes a more nuanced way to consider the industry. Section 1 provides a brief overview of existing accounts of the sports economy. We first differentiate between three types of assessments: market research accounts conducted by consulting groups, academic accounts written by scholars, and structural accounts initiated primarily by national statistical agencies. We then discuss the European Union’s (EU) recent work to better account for and understand the sports economy. Section 2 describes the challenges constraining existing accounts of the sports economy. We describe two major constraints - measurement challenges and definition challenges - and highlight how the EU's work has attempted to address them. We conclude that, although the Vilnius Definition improves upon previous accounts, it still features areas for improvement. Section 3 therefore proposes a paradigm shift with respect to how we understand the sports economy. Instead of primarily inquiring about the size of the sports economy, the approach recognizes the diversity of sports-related economic activities and of relevant dimensions of analysis. It therefore warns against attempts at aggregation before there are better data and more widely agreed upon definitions of the sports economy. It asks the following questions: How different are sports-related sectors? Are fitness facilities, for instance, comparable to professional sports clubs in terms of their production scheme and type of employment? Should they be understood together or treated separately? We briefly explore difference in sports-related industry classifications using data from the Netherlands, Mexico, and the United States. Finally, in a short conclusion, we discuss how these differences could be more fully explored in the future, especially if improvements are made with respect to data disaggregation and standardization.
- Topic:
- Development, Sports, Economy, and Economic Policy
- Political Geography:
- Europe and European Union
164. Off Pitch: Football’s financial integrity weaknesses, and how to strengthen them
- Author:
- Matt Andrews and Peter Harrington
- Publication Date:
- 01-2016
- Content Type:
- Working Paper
- Institution:
- The John F. Kennedy School of Government at Harvard University
- Abstract:
- Men’s professional football is the biggest sport in the world, producing (by our estimate) US $33 billion a year. All is not well in the sector, however, with regular scandals raising questions about the role of money in the sport. The 2015 turmoil around FIFA is obviously the most well known example, creating a crisis in confidence in the sector. This study examines these questions, and the financial integrity weaknesses they reveal; it also offers ideas to strengthen the weaknesses. The study argues that football’s financial integrity weaknesses extend far beyond FIFA. These weaknesses have emerged largely because the sector is dominated by a small elite of clubs, players and owners centered in Europe’s top leagues. The thousands of clubs beyond this elite have very little resources, constituting a vast base of ‘have-nots’ in football’s financial pyramid. This pyramid developed in recent decades, fuelled by concentrated growth in new revenue sources (like sponsorships, and broadcasting). The growth has also led to increasingly complex transactions—in player transfers, club ownership and financing (and more)—and an expansion in opportunities for illicit practices like match-fixing, money laundering and human trafficking. We argue that football’s governing bodies – including FIFA – helped establish this pyramid. We explore the structural weaknesses of this pyramid by looking at five pillars of financial integrity (using data drawn from UEFA, FIFA, clubs, primary research, and interviews). In the first pillar of Financial Transparency and Literacy we find that a vast majority of the world’s clubs and governing bodies publish no financial data, leaving a vast dark space with no transparency. In the second pillar of Financial Sustainability we estimate that a majority of global clubs and governing bodies are at ‘medium to high risk’ of financial failure. We find, additionally, that European tax debts have grown despite Financial Fair Play, and confederations and FIFA contribute to a pattern of weak Fiscal Responsibility. We then create a new metric of Financial Concentration and find that the football sector is at ‘high risk’ of over-concentration, which poses existential questions for many clubs and even leagues. In the final pillar of Social Responsibility and Moral Reputation, we find that football’s governing bodies face a crisis of legitimacy stemming from a failure to tackle moral turpitude, set standards and regulate effectively. We suggest a set of reforms to re-structure FIFA in particular, separating its functions and stressing its regulatory role.
- Topic:
- Crime, Sports, Economy, and World Cup
- Political Geography:
- Europe, Global Focus, and European Union
165. The Workforce of Pioneer Plants
- Author:
- Ricardo Hausmann and Frank Neffke
- Publication Date:
- 01-2016
- Content Type:
- Working Paper
- Institution:
- The John F. Kennedy School of Government at Harvard University
- Abstract:
- Is labor mobility important in technological diffusion? We address this question by asking how plants assemble their workforce if they are industry pioneers in a location. By definition, these plants cannot hire local workers with industry experience. Using German social-security data, we find that such plants recruit workers from related industries from more distant regions and local workers from less-related industries. We also show that pioneers leverage a low-cost advantage in unskilled labor to compete with plants that are located in areas where the industry is more prevalent. Finally, whereas research on German reunification has often focused on the effects of east-west migration, we show that the opposite migration facilitated the industrial diversification of eastern Germany by giving access to experienced workers from western Germany.
- Topic:
- Science and Technology, Labor Issues, Labor Policies, Human Capital, Diversification, and Mobility
- Political Geography:
- Europe, Germany, and European Union
166. Evaluating Western Sanctions on Russia
- Author:
- Sergey Aleksashenko
- Publication Date:
- 12-2016
- Content Type:
- Special Report
- Institution:
- Atlantic Council
- Abstract:
- It has been more than two years since the European Union (EU) and the United States (US) imposed economic sanctions on Russia for its aggression in Ukraine. For some of the measures, though not all, that is time enough to evaluate effectiveness. But before such an assessment can be made, the initial goals of the sanctions should be clearly stated. This is not as straightforward as it might seem.
- Topic:
- Foreign Policy, International Security, Sanctions, and Geopolitics
- Political Geography:
- Russia, America, and European Union
167. FROM EU STRATEGY TO DEFENCE SERIES EU Strategy and European Defence What Level of Ambition?
- Author:
- Luis Simon
- Publication Date:
- 11-2016
- Content Type:
- Policy Brief
- Institution:
- Clingendael Netherlands Institute of International Relations
- Abstract:
- The global proliferation of precision-strike systems and the concomitant emergence of anti-access and area denial (A2/AD) capabilities challenges the foundations of Western global military-technological supremacy. What does this mean for current EU debates on military ambition? This policy brief argues that the assumption of the freedom of (military) access and movement, which has guided European strategic thinking since the end of the Cold War, is no longer valid. Europeans should get to grips with the new military-strategic paradigm and translate this into an updated ambition level and related capabilities.
- Topic:
- International Affairs, Military Strategy, Military Affairs, and Geopolitics
- Political Geography:
- Europe and European Union
168. European defence core groups
- Author:
- Margriet Drent, Anne Bakker, and Dick Zandee
- Publication Date:
- 11-2016
- Content Type:
- Policy Brief
- Institution:
- Clingendael Netherlands Institute of International Relations
- Abstract:
- The why, what & how of permanent structured cooperation The deteriorating security situation around Europe and the burgeoning messages from Washington that Europe has to take more responsibility for its own security call for a step change in European defence cooperation. So far, progress has been too slow. This policy brief argues that permanent structured cooperation (Pesco) offers the option to take a more ambitious and more productive route by member states willing to move forward more quickly, set more demanding objectives and commit themselves more strongly. This would end the well-known ‘voluntary basis’ which has often been used as an excuse for doing little or nothing at all.
- Topic:
- International Relations, Terrorism, International Security, International Affairs, and Political and institutional effectiveness
- Political Geography:
- America and European Union
169. EU trade diplomacy and the cold peace in cross-Strait relations
- Author:
- Maaike Okano-Heijmans
- Publication Date:
- 11-2016
- Content Type:
- Policy Brief
- Institution:
- Clingendael Netherlands Institute of International Relations
- Abstract:
- Today’s uncertainty in cross-Strait relations is not without consequence for third parties that maintain ties with both China and Taiwan. To what extent does (and should) the situation also impact on EU’s trade diplomacy with both sides? This policy brief argues that under today’s circumstances, the cold peace in cross-Strait relations is reason to tread carefully — and to stay on course. The May 2016 inauguration of the Taiwanese government led by Democratic Progressive Party (DPP) leader Tsai Ing-wen placed a big question mark over the future of cross-Strait relations. Within weeks, Beijing had unilaterally imposed a freeze on (semi-)official talks until the new Taiwanese President acknowledges the so-called 1992 Consensus. While confirming its ‘one China’ policy, the EU may contribute to the stability of cross-Strait relations by being a partner in China’s economic reform and by negotiating EU–China and EU–Taiwan investment agreements in parallel. In this policy brief author Maaike Okano-Heijmans builds on discussions during the 13th Symposium on ‘Sino–EU Relations and the Taiwan Question’, which was held in Shanghai from 9–11 October 2016 and in Taipei from 12–14 October 2016. These second-track dialogues were supported by the Friedrich Ebert Stiftung, the Shanghai Institute of International Studies and the Taiwanese Ministry of Foreign Affairs.
- Topic:
- International Relations, Foreign Policy, Diplomacy, International Political Economy, and International Trade and Finance
- Political Geography:
- China, Taiwan, and European Union
170. A strategy for Europe’s neighbourhood: keep resilient and carry on?
- Author:
- Sven Biscop
- Publication Date:
- 01-2016
- Content Type:
- Commentary and Analysis
- Institution:
- Elcano Royal Institute
- Abstract:
- If it cannot offer more than building up resilience, the EU risks locking itself out of its own neighbourhood. While external and regional powers are engaged in fierce geopolitical competition in Europe’s neighbourhood, the EU itself wants to focus on building up the resilience of its neighbours. Not only is it far from clear who is to be made resilient against what where there is no more or less benign government but, where countries are only just coming out of war, their first priority is national survival and their demand is for security guarantees. Would sovereignty and equality not be a better Leitmotiv for EU strategy in the neighbourhood?
- Topic:
- International Relations, Foreign Policy, and Sovereignty
- Political Geography:
- European Union