Fédération Internationale de Football Association (FIFA). FIFA is responsible for the organisation of football's major international tournaments, notably the World Cup Once in four years. FIFA was founded in 1904; its membership now comprises more countries and political entity than are members of World Trade Organizations. For instance, Taiwan rejoined FIFA in 1954 after affiliated with FIFA as China in 1932. It has been said that countries or political entities that has been qualified into FIFA membership means there are substantial recognition of the 4th elements internationally (national football team／territory／government／population). Therefore, football and politics cannot be separate.
Success in the FIFA World Cup provides countries with substantial international visibility. Thi
s paper uses this information shock associated with the World Cup to show that visibility has a significant impact on trade flows. In isolating the visibility effect, two identification problems are solved. Match outcomes in the World Cup are subject to significant uncertainty. This uncertainty, when combined with controls for economic development, makes World Cup success exogenous to exports. By contrast, hosting the World Cup is potentially endogenous owing to self-selection issues. The paper exploits FIFA's host selection policy to construct exogenous instruments for hosting. The results show that success in the World Cup raises exports temporarily by around 5%.