“The impact of the Olympic Games on the economic situation of the host country”

МИНИСТЕРСТВО НАУКИ И ВЫСШЕГО ОБРАЗОВАНИЯ РОССИЙСКОЙ ФЕДЕРАЦИИ

Федеральное государственное автономное образовательное учреждение

высшего образования

«Уральский федеральный университет имени первого Президента России Б.Н.Ельцина»

BA INTERNATIONAL ECONOMICS AND BUSINESS

TERM PAPER

Contemporary Methods for Econometric Analysis

Topic

“The impact of the Olympic Games on the economic situation of the

host country”

Instructor

Chukavina K.V.,

Senior Lecturer of Economics Department

STUDENT

EU-383610

Alexander Keznetsov

Yekaterinburg

2021

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Content

Abstract ……………………………………………………………………………………………….. 3

Introduction …………………………………………………………………………………………. 4

The Main Part ……………………………………………………………………………………… 7

Literature review ………………………………………………………………………………. 7

Thematic area and the hypothesis ……………………………………………………. 12

Data ………………………………………………………………………………………………… 14

Methodology and practical research ………………………………………………… 17

Conclusion ………………………………………………………………………………………….. 24

Applications ……………………………………………………………………………………….. 25

References ………………………………………………………………………………………….. 27

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Abstract

This study examines the impact of the Olympic Games on the economic

situation in the country where they were held. With the help of empirical research and

analysis of the results, I will try to prove or refute the hypothesis that the holding of

such a global event accelerates integration and stimulates the inflow of foreign

investment.

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Introduction

The economy is an important and complex sphere of human life, depending on

a fairly large number of factors, the change of each of which leads to completely

different and a couple of unpredictable consequences . We, in turn, are directly

dependent on the economy and the economic state of the country, which is why it is

so necessary to study and conduct a number of studies on the relationship of

indicators, in my case, this is the relationship between the Olympic Games and the

state of the economy in the country, namely, the change in this economic state ( both

for the better and for the worse).

The Olympic Games, which are the most popular sporting event in the world,

affect the host country’s economy. In fact, this is a problem that is worth

understanding, because the Olympic Games are not only a cost, but also a huge flow

of capital poured into the event period.

The Olympic Games are already a huge number of years old, but their

relevance does not fall, because every time they are collected by an unimaginable

mass of people both at TV screens and in the stands. Moreover, this problem is

particularly relevant, as it affects the problem of integration, cultural and social

problems, and even environmental problems.

Every year, a large number of sponsors appear at these events-from market

leaders to emerging companies, and the Olympic Games become not only a sporting

event, but also the largest advertising platform where everyone wants to grab their

“piece of the pie”. In fact, this global event is becoming a huge and influential factor

in every area of our lives. The Olympic Games, just like in economics, have the

character of competition, leadership, and rivalry.

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Similarly, the countries that host them have a spirit of competition and desire to

show the world their heroes and their financial capabilities ( these are athletes, the

scale of the arena, the colorful architecture, the scope of goods and services during

the event, and so on ).

The object of my research is the Olympic Games in various countries.

The subject of my research is the economic factors that show the impact of the

Olympic Games ( International Tourism, GDP, Imports, Exports, Inflation and

Unemployment Rate).

My database of statistics is taken from sources: World Data Bank, FRED,

OECD, because these are statistical data sites with the most accurate data around the

world and are used globally for various economic, econometric and other studies.

Tasks of the work:

• To collect data from the last countries that held Olympic games ;

• To examine differences between periods of games and periods without

them;

• To build an econometric model;

• To assess the impact during;

• Make a conclusions;

• Generate results.

Purposes:

1) Evaluate the positive or negative impact of the Olympic Games on the

economic situation in the host countries;

2) Test the hypothesis that the Olympic Games are a source of integration and an

incentive for investment inflows.

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The Olympic Games are a very important factor in the development of the

economy, and their holding can have both a negative and a positive impact. let’s

move on to the main part of the work in order to complete all the tasks set and form

indicative results about the relationship between the global event and the change in

the economic situation in the host country.

The Main Part

Literature review

This problem required a lot of effort and a search for voluminous information

to form the basis of my research. The most developed are the economic issues of the

preparation and conduct of the Olympic Games, which are quite fully presented in the

fundamental works of A. Blake, V. Girginov, E. Kazimati, K. Kaplanid, V.

Matheson, P. Porter, H. Preuss, J. Ricci, H. Solberg, G. Waite.

(Mei Wang Helen X. H. Bao, 2018) “Mega-event effects on the housing

market: Evidence from the Beijing 2008 Olympic Games”

The article itself is quite distant from my topic, but still connected with it, since

the problem of housing during the Olympic Games is a very important part and the

article deals with this problem, for example, the Olympic Games in Beijing in 2008.