As part of the CBP seminar series, Dr Johan Rewilak (Lecturer, Aston University) will provide a presentation on ‘Some Positive Economic Benefits from Hosting Sporting Mega-Events: Bucking the Trend’

Abstract

Sporting mega events (SMEs) are typically found to provide either limited or no economic benefits to host nations. Even if any benefits are accrued, they tend to be short-lived. However, the majority of the existing research on SMEs, focus on the service sector and either during or ex-post the event. In contrast, this study examines the ex-ante benefits of hosting on industrial firms. Using a dataset of over 16,000 firms from 18 countries, over the period 2008-18, hosting a SME may increase the pre-tax profit of industrial firms. Thus, it shows a positive economic benefit of hosting. To identify the host effect, we compare firms in a nations that host a SME, to those located in countries that unsuccessfully bid for SMEs. Therefore, we assume that firms in unsuccessful bidders are of similar likeness in terms of profits, conditional on firm and country characteristics, differing only by the experience of actually hosting a SME. We conclude that whilst a positive statistically significant impact is found, its economic significance may still not offset the huge expense associated with hosting a SME.

 

Details on Dr Johan Rewilak’s research, can be found here.

CLICK HERE to join the seminar via Teams.