The Economic Impact on the Dominican Republic of Baseball Player Exports to the USA

Amavilah, Voxi Heinrich (2006): The Economic Impact on the Dominican Republic of Baseball Player Exports to the USA.

Abstract

This paper pulls together into one practical model two strands of economic theory to assess the impact of baseball player exports on the aggregate economic performance of the Dominican Republic. On one hand, foreign trade theory predicts a strong correlation between a country’s exports and economic performance measured as per capita income. On the other hand, microeconomic research finds a positive, but statistically insignificant, impact of sports activities on local economies. Analysis finds a strong correlation between baseball player exports and economic performance for the years 1962-2004, suggesting that both the USA and the Dominican Republic benefit from encouraging baseball player trade and repatriation of baseball export earnings.

• Item Type: MPRA Paper
• Institution: REEPS
• Language: English
• Keywords: baseball player exports; sports exports; sports and economic performance; sports export-led growth
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General; L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

References

Ades, A. & Chua, H. (1997). Thy neighbor’s curse: Regional instability and economic growth. Journal of Economic Growth, 2(3), 279-304. Allen, R.G.D. (1967). Macro-Economic Theory: A Mathematical Treatment. New York: St Martin’s Press. Balassa, B. (1978). Exports and economic growth: Further Evidence. Journal of Development Economics, 5, 181-189. Barro, R.J. (1991). Economic growth in a cross section of countries. Quarterly Journal of Economics, CVI (2), 407-443. Baseball-almanac (2006). Major Legue Baseball Players Born in Dominican Republic. http://www.baseballalmanac. com/players/birthplace.php?loc=Dominican%20Republic. Boskin, M. & Lau, L. (1991). Capital formation and economic growth. In Technology and Economics, Papers Commemorating Ralph Landau’s Service to the National Academy of Engineering (pp.47-56), Washington, D.C. National Academy Pres. Caves, R. (1971). Export-led growth: The post-war industrial setting. In W.A. Eltis, M.F.G. Scott and J.N. Wolfe ( Eds.), Induction, Growth and Trade: Essays in Honor of Sir Roy Harrod (pp. 234-254), London: Oxford University Press. Choi, K. (1983). Theories of Comparative Economic Growth. Ames (Iowa): Iowa State University Press. Corden, M..W. (1971). The effects of trade on the rate of economic growth In J. Bhagwati (Ed.), Trade, Balance of Payments, and Growth (pp. ), place: publisher. Dixon, R.J. & Thirlwall, P.A. (1975). A model of regional growth-rate differences on Kaldorian lines. Oxford Economic Papers, 27, 201-214. Downward, P. & Dawson, A. (2000). The Economics of Professional Team Sports. New York: Routledge. Emery, R. (1967). The relation of exports and economic growth. Kyklos, 20, 470-484. Esfahami, H.S. (1991). Exports, Imports and economic growth in semi-industrialized countries. Journal of Development Economics, 35, 93-116. Feder, G. (1983). On exports and economic growth. Journal of Development Economics, 12, (1&2), 24 Fort, R.D. (2003). Sports Economics. New York: Prentice Hall. Fosu, A. (1990). Export composition and the impact of exports on economic growth of developing economies. Economics Letters, 34(1), 67-71. Frenkel, J. &. Romer, D. (1999). Does trade cause growth? American Economic Review , 89(3), 379-399. Grossman, G. & Helpman, E. (1991). Innovation and Growth in the Global Economy. Cambridge (MA): MIT Press. Guaresma, J.C. &. Worz, J. (2003). On Export Composition and Growth, Working Paper N. 0309. Department of Economics, University of Vienna. Hentschel, J. (1991). A note on the relationship between imports and growth. Weltwirtschsftliches Archiv, ?? , 339-345. Hudson, I. (2001). The use and misuse of economic impact analysis: The case of professional sports. Journal of Sport and Social Issues, 25(1), 20-39. Kaldor, N. (1978). Further Essays on Economic Theory. New York: Holmes & Meier. Kindleberger, C.P. (1962). Foreign Trade and the National Economy. New Haven: Yale University Press. Kravis, I.B. (1970). Trade as a handmaiden of growth: Similarities between the Nineteenth and Twentieth Centuries. Economic Journal, 80, 850-870. Krugman, P. (1994). Rethinking International Trade. Cambridge (MA): MIT Press. ?Krugman, P. - Ed. (1988) Strategic Trade Policy and the New International Economics. Cambridge (MA): MIT Press. Lahman, S. (2006). Minimum and Average Player Salaries 1967-1997 (US$), Associated Press. Lucas, R. (1993). Making a miracle. Econometrica, 61(2), 251-272. Lucas, R. (1988). On the mechanics of economic development. Journal of Monetary Economics, 32(??), ???? Love, J. (1992). Export instability and the domestic economy: Questions of causality. Journal of Development Studies, 28(4), 735-742. Matheson, V. (2004).Research Note: Contrary Evidence on the Economic Impact of he Super Bowl on the Victorious City, Draft 5/5/2004. Department of Economics, College of the Holy Cross. 25 Matheson, V. (2002). Upon further review: A examination of sporting event economic impact studies. America’s Sports, 5(1). Michaely, M. (1979). Exports and growth: A reply. Journal of Development Economics, 6, 141-143. Michaely, M. (1977). Exports and economic growth: An empirical investigation. Journal of Development Economics, 4, 49-53. Myrdal, G. (1957). Economic Theory of Underdeveloped Regions. London: Duckworth. ?Ning, C.H. & Hoon, P.S. (2000). Compilation of Singapore’s Constant Price GDP Estimates. Economic Accounts Division, Singapore Department of Statistics (Asian Development Bank and U.N. Economic and Social Commisssion for Asia and the Pacific, Joint ADB/ESCAP Workshop on Rebasing and Linking of National Accounts Series, Bangkok, Thailand (21-24 March). ?Noll, R.G. &. Zimbalist, A. (Eds.) (1997) Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums. Washington, D.C.: Brookings Institution Press. Chapters 1, 2, 3, 7, 13, and 15. Razmi, A. & Blecher, R. (2005). The Limits to Export-Led Growth: An Empirical Study, Working Paper 2005- 02. Department of Economics University of Massachusetts, Amherst. Samuelson, P.A. (2004.). Where Ricardo and Mill rebut and confirm arguments of mainstream economists supporting globalization. Journal of Economic Perspectives, 18(3), 135-146. Samuelson, P.A. (2002). Innovational progress sans thrift. Japan and the World Economy, 14, 281-284. Sanderson, A.R. & Siegfried, J.J. (2006). Simon Rottenberg and baseball, then and now: a fiftieth anniversary retrospective. Journal of Political Economy, 114(3), 594-605. Scully, G.W. (1995). The Market Structure of Sports. Chicago: University of Chicago, Chapter 2. Siegfried, J. &. Zimbalist, A. (2000). The economics of sports facilities and their communities. Journal of Economic Perspectives, 14(3), 95-114. Thirlwall, A.P. (1982). Growth and Development, 2nd Edition, London: Macmillan Press, Ltd. White, H. (1980). A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica 48, 817-38. Young, A. (1928). Increasing returns and economic progress. Economic Journal 38, 527-542.