Impact of International Sporting Events on the Economy: Foreign Experience

Abstract

The contribution of sporting mega-events to the growth of the host economy remains an open question in the academic and expert communities. Their preparation requires enormous investments in the construction and modernization of infrastructure, as well as trade development and tourism expansion. Theoretically, this may seem to be fertile ground for economic growth and high investment performance. However, in practice, major sporting events, as a rule, induce budget overruns and huge debt of the host country; investment strategies are rarely successful; and financial expectations from such events are overestimated. This article is devoted to the comparative analysis of foreign and Russian experience in the implementation of sports mega-events. This research helps to systematize the effects of such events for the socioeconomic development of the country.

Keywords

• major sporting event
• mega-event
• regional development
• long-term economic growth
• infrastructure
• tourism
• corruption
• investment