The long-term growth eﬀects of the Olympic Games in Beijing: a theoretical investigation of growth channels of mega-events
Mega-events like World Exhibitions, Soccer World Cups and of course Olympic Games receive a lot attention from the public for many years. Although the event itself lasts only a few days, the planning and organization requires years of intensive work. Because of the increasing size of megaevents and the rising number of participants and visitors, investments related to events are also constantly growing. Besides the building of sport venues, construction of new infrastructure and accommodation in the host region is also necessary. Due to the tremendous investment activities it seems to be useful to make an in-depth analysis of the economic eﬀects triggered by hosting a mega-event like the Olympic Games. In general, it is possible to examine short-term demand eﬀects, long-term supply eﬀects, as well as to conduct a cost-beneﬁt or a socio-economic analysis. Literature shows that an assessment of the long-term growth eﬀects based on a theoretical model does not yet exist. Such a theoretical investigation is necessary to provide an overall judgement of mega-events. Therefore it seems to be reasonable to investigate the following research questions: Can hosting a mega-event inﬂuence the long-term economic growth of a country? What are the transmission channels of a mega-event concerning the growth rate of the gross domestic product (GDP)?