HOSTING THE OLYMPIC GAMES: HELPFUL OR HARMFUL? AN ANALYSIS OF THE IMPACT ON A HOST-NATION’S ECONOMIC WELFARE

Abstract

Does hosting the Olympic Games have an impact on the economy? This paper builds off similar literature and uses difference in differences regression models to determine whether hosting has a causal effect on the economy. Using data from The World Bank, OECD iLibrary and SAGE Data-Planet, we look at the annual economic variables of numerous countries. We then examine and test for whether these variables experienced statistically significant change from hosting past Olympics. Our results indicate that we can theorize a causal relationship between hosting and changes in the short-term economy, but minimal effects in long-run economic welfare.