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Disentangling the Effects on the Korean Economy of the 9/11 Terrorist Attacks from the Short-Run Effects of Hosting the 2002 World Cup, Using the Cge Model

Author

Listed:
  • Choong-Ki Lee

    (College of Hotel and Tourism, Kyunghee University, 1 Hoegi-dong, Dongdaemun-gu, Seoul, Korea)

  • Seogwoong Moon

    (Chair-Research Fellow, Busan Development Institute, Yangjung dong 273-20, Busan Jin-gu, Busan, Korea)

  • James W. Mjelde

    (Department of Agricultural Economics, Texas A&M University, College Station, TX 77843-2124, USA)

Abstract

The short-term effects of hosting the 2002 World Cup on the Korean economy are examined. Simulations using a computable general equilibrium model are carried out in a short-run framework, where the shock level was taken from the percentage changes in foreign tourism receipts observed between 2000 and 2002. Because of the dramatic events that occurred before and after 2002, the effect of these events must be removed to estimate the effects of the World Cup on the Korean economy. Using time series forecasting models, attempts are made to isolate the impacts of the 9/11 terrorist attacks from the impact of the World Cup. The results suggest that hosting the World Cup had a positive impact on the economy. This positive impact, however, is smaller than the negative impact of the 9/11 attacks. These differences explain the downturn in the Korean tourism industry and economy in 2002.

Suggested Citation

  • Choong-Ki Lee & Seogwoong Moon & James W. Mjelde, 2010. "Disentangling the Effects on the Korean Economy of the 9/11 Terrorist Attacks from the Short-Run Effects of Hosting the 2002 World Cup, Using the Cge Model," Tourism Economics, , vol. 16(3), pages 611-628, September.
    • Handle: RePEc:sae:toueco:v:16:y:2010:i:3:p:611-628
    DOI: 10.5367/000000010792278455
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    References listed on IDEAS

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    1. Robert Baade & Victor Matheson, 2004. "The Quest for the Cup: Assessing the Economic Impact of the World Cup," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 343-354.
    2. Kasimati, Evangelia & Dawson, Peter, 2009. "Assessing the impact of the 2004 Olympic Games on the Greek economy: A small macroeconometric model," Economic Modelling, Elsevier, vol. 26(1), pages 139-146, January.
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    Cited by:

    1. Massiani, Jerome, 2019. "CGE Analysis of Mega Events: A Timely Issue," Conference papers 333109, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Jeremy Wood & Samuel Meng, 2021. "The economic impacts of the 2018 Winter Olympics," Tourism Economics, , vol. 27(7), pages 1303-1322, November.
    3. MASSIANI, Jérôme, 2022. "Computable General Equilibrium assessment of mega-events: Issues and possible solutions," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 920-942.
    4. Narayan, Paresh Kumar & Sharma, Susan Sunila & Bannigidadmath, Deepa, 2013. "Does tourism predict macroeconomic performance in Pacific Island countries?," Economic Modelling, Elsevier, vol. 33(C), pages 780-786.
    5. Nicolau, Juan L., 2012. "The effect of winning the 2010 FIFA World Cup on the tourism market value: The Spanish case," Omega, Elsevier, vol. 40(5), pages 503-510.
    6. Massiani, Jérôme, 2018. "Assessing the economic impact of mega events using Computable General Equilibrium models: Promises and compromises," Economic Modelling, Elsevier, vol. 75(C), pages 1-9.

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