2011/01/19 by Andrew K. Rose, Mark M. Spiegel · 2 citations
Economics, Econometrics and Finance · #Bidding #Business #Economic Policies and Impacts #Economics #Event (particle physics) #Global trade and economics #Host (biology) #International economics #International trade #Marketing #Mega- #Merger and Competition Analysis
paper · doi:10.1111/j.1468-0297.2010.02407.x
openalex publication_date 2011/01/19 · openalex created_date 2016/06/24 · openalex updated_date 2026/07/23
Why should countries offer to host costly ‘mega‐events’ such as the Olympic Games? We show that hosting a mega‐event increases exports. This effect is statistically robust, permanent and large; trade is over 20% higher for host countries. Interestingly, unsuccessful bids to host the Olympics have a similar impact on exports. We conclude that the Olympic effect on trade is attributable to the signal a country sends when bidding to host the games, rather than the act of actually holding a mega‐event. We develop an appropriate formal model and derive conditions under which liberalising countries will signal through a mega‐event bid.