Abstract
This study investigates how hosting and unsuccessfully bidding to host the Olympic Games impacts total international trade and influences a country’s openness. This relationship is analyzed using the gravity model of trade to perform a regression analysis of total trade levels from 2000 to 2018. The results of this study did not support the idea that hosting the Olympic Games impacts total trade; although, they did show a strong and permanent positive relationship between unsuccessfully bidding to host the Olympic Games and total international trade. These findings highlight the benefits of the Olympic bidding and candidature process as a policy tool for economic liberalization. The disparity between the effect of bidding to host the Olympics and actually being a host country draws attention to the controversial cost-benefit analysis of being an Olympic host. This research strengthens the argument that mega-events like the Olympics can be strategically utilized to elevate a country’s economic standing. However, it also reinforces the rebuttal that merely demonstrating the economic capability to host such an event is sufficient to positively impact international relations.
Recommended Citation
Cherry, Adalynn
(2025)
"ECONOMICS OF THE OLYMPICS: IMPACT OF BIDDING FOR AND HOSTING THE OLYMPIC GAMES ON INTERNATIONAL OPENNESS,"
Pennsylvania Economic Review: Vol. 32:
No.
2, Article 4.
DOI: https://doi.org/10.65193/3067-8080.1022