The Role of Major Sporting Events in Economic Growth : Assessing the Impact of the Olympics on Host Economies

Date

6-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ma. Janda Ira Felina M. Benedictos

Committee Member

Aaron T. Castillo, Gideon P. Carnaje, Ma. Angeles O. Catelo

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Abstract

Hosting events like the Olympics is no small feat and must be carefully thought through. If a country is willing to host a major sporting event like the Olympics, one must invest around 50 to 100 million USD in evaluating, preparing, and submitting a bid, this is all just to be considered to be a host of a major sporting event (Yehia, 2018). These costs also come with benefits as hosting these events could result in inflows of foreign capital and generate employment for the country. The countries believe that the benefits outweigh the costs which might be true for some countries. With that said, this study will seek to answer the question: Is there a significant change with the countries’ GDP growth rate after hosting the Olympics? According to the Solow Growth model, economic growth is driven by capital accumulation, labor force, and technological progress. Hosting the Olympics may lead to temporary increases in output through capital investments through the construction and improvement of infrastructure and increased employment opportunities. This study employed a Structural Break Analysis through the Wald test in the GDP Growth of countries that have hosted the Olympics. The independent variables will Gross Fixed Capital Formation and Labor Force Growth. The results show that there are some strong reasons to believe that structural breaks on GDP Growth did occur around the time of hosting the Olympics. Australia, Greece, and China demonstrated a structural break in the year of hosting the Olympics. The USA and UK exhibited a structural break a year after hosting the games. Brazil is the lone country that resulted in a structural break before hosting the Olympic Games.

Language

English

LC Subject

Hosting of sporting events, Olympics—Economic aspect

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 F75

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Document Type

Thesis

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