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Modelling the economic impact of sports events: The case of the Beijing Olympics

Author

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  • Li, ShiNa
  • Blake, Adam
  • Thomas, Rhodri

Abstract

Major sports events are used increasingly by policy-makers to stimulate economic development. This has resulted in a growth of academic interest in ways of analysing their contribution. Following a review of the literature on the contrasting approaches that have been used, this paper assesses the economic impact of the Beijing Olympics, in particular the tourism impact, using computable general equilibrium (CGE) modelling. To add novelty, it analyses the data under conditions of imperfect competition, an approach that has been used to good effect in other contexts, notably international trade. The findings suggest that staging the Beijing Olympics brought economic benefits to the host economy but that the scale of the impact was not significant compared to the total size of the economy. The welfare impacts of the Beijing Olympics under imperfect competition are shown to be higher than when perfect competition is assumed. This is explained by the pro-competitive effect.

Suggested Citation

  • Li, ShiNa & Blake, Adam & Thomas, Rhodri, 2013. "Modelling the economic impact of sports events: The case of the Beijing Olympics," Economic Modelling, Elsevier, vol. 30(C), pages 235-244.
  • Handle: RePEc:eee:ecmode:v:30:y:2013:i:c:p:235-244
    DOI: 10.1016/j.econmod.2012.09.013
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    References listed on IDEAS

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    Cited by:

    1. Narayan, Paresh Kumar & Rath, Badri Narayan & Prabheesh, K.P., 2016. "What is the value of corporate sponsorship in sports?," Emerging Markets Review, Elsevier, vol. 26(C), pages 20-33.
    2. repec:eee:touman:v:59:y:2017:i:c:p:621-629 is not listed on IDEAS
    3. repec:eee:touman:v:59:y:2017:i:c:p:325-337 is not listed on IDEAS
    4. Amélie Charles & Olivier Darné, 2016. "Stock market reactions to FIFA World Cup announcements: An event study," Economics Bulletin, AccessEcon, vol. 36(4), pages 2028-2036.
    5. Cuccia, Tiziana & Guccio, Calogero & Rizzo, Ilde, 2016. "The effects of UNESCO World Heritage List inscription on tourism destinations performance in Italian regions," Economic Modelling, Elsevier, vol. 53(C), pages 494-508.
    6. Scaringella, Laurent & Chanaron, Jean-Jacques, 2016. "Grenoble–GIANT Territorial Innovation Models: Are investments in research infrastructures worthwhile?," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 92-101.
    7. Bartha, Eva & Perenyi, Szilvia, 2015. "Communication of trainers as one of the means for customer retention in fitness clubs," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 0(Number 1-), pages 1-6, March.

    More about this item

    Keywords

    Economic impacts; Tourism impacts; The Beijing Olympics; Computable general equilibrium modelling; imperfect competition;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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