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The causal economic effects of Olympic Games on host regions

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  • Firgo, Matthias

Abstract

This paper is the first to study the effects of hosting Olympic Games on regional economic output beyond population dynamics. For identification, runners-up in the Olympic bidding process are used to construct the counterfactual for Olympic host regions. In the short run, hosting Summer Olympics boosts regional GDP per capita by about 3–4 percentage points relative to the national level in the year of the event and the year before. There is also evidence for positive long-run effects, but results on the latter are not statistically robust. In contrast, Winter Olympics do not have a positive impact on host regions. If anything, they lead to a temporal decline in regional GDP per capita in the years around the event.

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  • Firgo, Matthias, 2021. "The causal economic effects of Olympic Games on host regions," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:regeco:v:88:y:2021:i:c:s0166046221000338
    DOI: 10.1016/j.regsciurbeco.2021.103673
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    2. Martin Thomas Falk & Markku Vieru, 2021. "Short-term hotel room price effects of sporting events," Tourism Economics, , vol. 27(3), pages 569-588, May.
    3. Seung-Jin Han & Won-Jae Lee & So-Hee Kim & Sang-Hoon Yoon & Won Shick Ryu & Hyunwoong Pyun & Daehwan Kim, 2022. "Effects of the Olympic Announcement and the Actual Event on Property Values: The Case of the 2018 PyeongChang Winter Olympic Games," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    4. Wifo, 2023. "WIFO-Monatsberichte, Heft 7/2023," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(7), July.
    5. Matthias Firgo & Oliver Fritz, 2023. "Regionalwirtschaftliche und touristische Effekte von Sportgroßveranstaltungen," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(7), pages 481-490, July.

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    More about this item

    Keywords

    Olympic Games; Mega events; Public infrastructure; Regional development; Causal effects; Sports economics;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Z28 - Other Special Topics - - Sports Economics - - - Policy
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy

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