The Economic Impact of Major Sporting Events

Abstract

Currently, in modern scientific literature there is no consensus regarding the effects that arise in countries in connection with the holding of sports mega-events - the Olympic Games and the World and European Football Championships. From a macroeconomic point of view, the organization of mega sports events, associated with large investments from the government and business, can help increase the rate of economic growth in the country. In addition, mega sporting events should contribute to the emergence of positive effects in the economy caused by an increase in tourist flows, foreign trade volumes and foreign investment. At the same time, the emergence of positive effects from hosting sports mega-events is constrained by various circumstances: the often-negative net financial result for the host country, the low efficiency of public investment, and the low occupancy of sports facilities and infrastructure after the sporting event. In addition, such indicators as an increase in the population’s involvement in sports and physical education, an improvement in the country’s image abroad, and an increase in the number of people feeling proud of their country are quite difficult to take into account in quantitative analysis.

The purpose of this thesis research is to assess the impact of hosting mega sporting events on the economic growth of the host countries.

The analysis of the economic impact of the influence of sports mega-events was carried out on a database including indicators of 50 countries that hosted 49 sports mega-events in the period 1970-2022, and a detailed study of the economic impact of hosting a sports mega-event was carried out using the example of the World Cup Football 2018, held in Russia. Considering separately countries with developed and developing (transition) economies, it was not possible to detect a stable relationship between the holding of sports mega-events and economic growth for the group of developed countries, while for the group of countries with developing (transition) economies, acceleration of economic growth is observed as before, and after the sports mega-event. The results obtained can be used to substantiate decisions on filing applications for the Olympic Games and World and European Football Championships, which emphasizes the practical significance of the study.