nep-spo New Economics Papers
on Sports and Economics
Issue of 2019‒12‒02
two papers chosen by
Humberto Barreto
DePauw University

  1. The Causal Economic Effects of Olympic Games on Host Regions By Matthias Firgo

  1. By: Matthias Firgo
    Abstract: This paper studies the effects of hosting Olympic Games on the regional economy in the short and long run. 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 to 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.
    Keywords: Olympic Games, mega events, public infrastructure, regional development, causal effects, sports economics
    Date: 2019–11–23
  2. By: Igor B. Orlov (National Research University Higher School of Economics)
    Abstract: The 1980 Olympiad in Moscow (the first Olympiad in Eastern Europe and the socialist state) is viewed through the prism of the successes and failures of the cultural and sports diplomacy of the Soviet state. Olympics-80 as a kind of mega-project "developed socialism" promoted (albeit temporarily) not only to strengthening the position of the Soviet Union in the international arena (especially in the background of the Soviet invasion of Afghanistan), but also unity of Soviet citizens in the face of "Western threat". The situation was somewhat more complicated with attempts to use the Olympic project to strengthen the socialist camp. The source base of the research was the materials of the State archive of the Russian Federation, the Russian state archive of socio-political history and the Central archive of Moscow, as well as the published documents of the Russian state archive of modern history. It is shown that, despite the boycott of the Olympics, its consequences did not have a particularly strong impact on the development of sports ties and international tourism in the USSR. For example, in 1980, at the suggestion of the delegation of the USSR, the participants of the world conference on tourism, when adopting the Manila Declaration on world tourism, included in the Declaration all the initiatives of the Soviet delegation. And since 1982, the process of restoring international sports contacts began.
    Keywords: megaproject, soft power, cultural diplomacy, sports diplomacy, Olympics-80, international tourism
    JEL: Z
    Date: 2019

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