A Leading International Speaker Consultation & Booking Service

International Speaker Bureau

Tel: +44 (0)20 7607 7070

Search

Olympics has positive economic impact on both winning - and losing - bidders

Guardian Economics 14th April 2009

Hosting the Olympic games has a positive impact on a country's economy, giving a powerful boost to exports, according to academic research - but the benefits are just as strong for unsuccessful bidders.

Governments go to extraordinary lengths to secure the two-week event. However, using a statistical model, Andrew Rose of the Haas School of Business at the University of California and Mark Spiegel of the San Francisco Federal Reserve show that the 30% uplift in exports enjoyed by successful bidders is shared by countries that lose out - and they don't have to spend billions on athletics tracks and velodromes.

The authors suggest this may be because by offering to host the games, governments are sending a "costly policy signal" to the world that they are ready and open for business. Beijing won the games in 2001, just before China secured entry to the World Trade Organisation; Barcelona was chosen in 1986, the year Spain joined the European Economic Community; and the Tokyo games in 1964 came at the time of Japan's entry to the International Monetary Fund.

However, with financing for some parts of the London 2012 project in crisis, the authors say that for Britain the economic benefits of holding the games are much less clear, even without the backdrop of a deep recession.

"Our model predicts that bidders for the Olympics regret actually hosting the games," Rose says. "That's one implication that seems consistent with the British data so far."

  • Speakers Corner (London) Ltd
    Unit 31, Highbury Studios
    10 Hornsey Street
    London
    N7 8EL

    Tel: +44 (0)20 7607 7070 
    Fax: +44 (0)20 7700 8847 
    info@speakerscorner.co.uk

  • Extremely efficient with a genuine personal touch. Plum Pictures

  • Footer Logos

    logo-1.png

Agile web development by Byte9

Top