Proceedings of the 10th Economics & Finance Conference, Rome

THE EFFECTS OF MAJOR SPORTS EVENTS ON ECONOMIC GROWTH AND FOREIGN DIRECT INVESTMENT INFLOWS: THE RESULTS OF EMPIRICAL ESTIMATION

GROZNYKH ROGNEDA, IGOR DRAPKIN, OLEG MARIEV

Abstract:

In the modern literature there is no consensus on the effects arising in countries as a result of hosting major sports events, namely the Olympic Games, FIFA World Cup and UEFA European Championship. This paper focuses on two aspects of the major sports events effects in the hosting country: on economic growth and foreign direct investment inflows. The estimated database includes indicators for all countries that hosted major sport events during 1970–2015. This paper confirms the hypotheses of positive effects both on economic growth and foreign direct investment in the hosting countries. Positive significant effects are found not only during the period of preparation to the event, but (what is more important) during the 4 to 12 year period after the event.

Keywords: major sports events, economic growth, foreign direct investment inflows, the Olympic Games, FIFA World Cup, UEFA European Championship, effects of hosting major sports events, Solow model

DOI: 10.20472/EFC.2018.010.030

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