The Relation Between National Competition and International Competitiveness
The Relation Between National Competition and International Competitiveness

Summary/Abstract: Purpose: The paper analyses two current topics in sport economics research and their relationship. Looking at the past 25 years and 21 countries as well as leagues in European football, it is worth looking for the answer to the question of whether there is causality between international competitiveness and competitive balance. In other words, whether an increase in the balance of the national league (namely in excitement) causes the development (better performance of the national team) of a given country’s football or this causality is reversed. Methodology: By measuring the extent of competitive balance and identifying the measure of competitiveness, the Granger causality was tested to analyse the relationship of the UEFA country coefficient, the FIFA World Ranking and the Herfindahl ratio of competitive balance (HRCB). Findings: Based on the estimation and testing of vector autoregressions in panel data, it can be stated that the FIFA World Ranking Granger-causes HRCB. Better sports performance of a country’s national team indicates that a given league will also be appreciated, meaning that better and better players will arrive in a better and better league, which will attract more exciting games, so a decrease can be observed in competitive balance. Research limitations: The study focused on only two indicators of competitiveness, so it is worth examining causality with more measures in the future. Value: From a management perspective, it is believed that the boards of leagues should consider the results presented in this study, such as that better presence of the national team will make the league more balanced, which will lead to a rise in demand.

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