Annotated Bibliography Of Economic Impact Of Sports Events

Annotated Bibliography of Economic Impact of Sports Events

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This annotated bibliography aims to synthesize existing research on the economic impact of hosting sports events in cities and countries. It reviews studies that evaluate direct, indirect, and induced economic effects stemming from sporting events, including expenditures by visitors and participants, employment generation, urban promotion, and long-term development impacts. The purpose is to develop a comprehensive framework and identify methodologies for future research in this field, focusing on variables such as event size, economic impact measurement techniques, and socio-economic effects.

Paper For Above instruction

Hosting major sports events has long been recognized as a strategy for cities and countries to stimulate economic growth and increase global visibility. The reviewed literature underscores the multifaceted nature of economic impacts, which encompass direct expenditures, such as ticket sales and accommodation bookings; indirect effects, including employment and business opportunities; and induced effects like household income increases. Understanding these impacts requires robust methodologies and careful assessment to inform policy and maximize benefits.

One significant area of research investigates whether the size of the sporting event influences its economic impact. Agha, Nola, and Marijke Taks (2016) provide a theoretical comparison between large and small events, proposing that smaller-scale events may generate more positive economic outcomes than mega-events. Their analysis employs models based on supply and demand, including Event Resource Demand (ERD) and City Resource Supply (CRS), allowing for simplified yet effective comparisons across different event sizes. Their findings suggest that hosting multiple smaller events may be more beneficial economically than a single large event, emphasizing the importance of strategic planning in event selection. This work offers valuable insights for policymakers aiming to optimize economic returns from sporting events of varying scales.

Similarly, Allan et al. (2016) explore the economic effects of the Glasgow 2014 Commonwealth Games by utilizing computable general equilibrium (CGE) models. Their study estimates the expenditure of visitors, differentiating between overnight guests and day visitors, and assesses the impact on Glasgow’s GDP. Their approach demonstrates more flexible and nuanced analysis compared to traditional input-output models, providing a sophisticated method to capture the ripple effects of large-scale sporting events on local economies. This methodology is particularly relevant for researchers interested in contemporary assessment techniques and quantifying tourism-related impacts.

The importance of pre-event and ongoing economic assessment is highlighted by Angel et al. (2010), who examine the Rally Ourense in Spain through surveys and interviews with spectators, media, and organizers. Their findings highlight that the event generated significant economic inflows, with total benefits totaling approximately €4.2 million across three editions. Their approach underscores the value of primary data collection and stakeholder engagement for capturing localized effects and supports the use of mixed-method strategies in impact assessment. Such studies contribute to understanding how smaller, specialized sports events can generate tangible economic benefits.

Historical analyses of mega-events, such as the FIFA World Cup, provide further context. Choong-Ki Lee et al. (2004) estimated expenditures during the 2002 FIFA World Cup in South Korea using questionnaires and input-output analysis, arriving at a total economic impact of approximately US$1.35 billion. Despite reliance on an input-output framework, their work offers valuable baseline data for assessing mega-event impacts and highlights the challenges of capturing indirect and induced effects with limited models.

Research also emphasizes the variability of economic impacts across different countries and event types. Gratton et al. (2006) reviewed ten major sports events in the UK, comparing their economic gains and noting disparities. For instance, the 2002 World Snooker Championship generated over €2.2 million, whereas junior swimming championships yielded less than €260,000. Their comparative analysis provides insights into how different event formats, contexts, and infrastructure investments influence economic outcomes, informing strategic planning for future events.

Cost-benefit analyses further deepen understanding of social and economic trade-offs. Jimenez-Naranjo et al. (2015) assessed the World Paddle Tour in Caceres, Spain, combining satellite accounts, input-output tables, and contingent valuation methods. Their study revealed a socio-economic benefit of approximately €974,000 against a relatively low cost, emphasizing the positive community impacts, satisfaction, and image promotion. This multi-method approach exemplifies comprehensive impact evaluation, highlighting how sports events can serve broader social objectives alongside economic gains.

Research into regional impacts broadens the scope of impact assessments. Huang and Zhang (2014) examined three major Chinese sports events—the Shanghai Grand Prix, ATP Tennis Masters, and Marathon—estimating the contribution of participants to economic activity via input-output models. While the results support the notion that major events promote local economies, they also point out the importance of capturing full participant categories to improve accuracy. Their work demonstrates practical applications of economic modeling in emerging markets.

Similarly, Klimko (2017) analyzed the GDP impacts of the Olympic Games held in Sydney (2000), Athens (2004), Beijing (2008), and London (2012). His findings show that while each Olympics contributed to short-term economic activity, there was also a slowdown in GDP growth immediately after the events. Notably, researcher points out that sports-related costs are substantial, yet the long-term economic benefits are less certain, echoing concerns about the cost-effectiveness of hosting mega-events.

Case studies of specific sports entities, such as Konecke et al. (2015), evaluate the regional economic impact of a football club in Germany, showing that Rheineland-Palatinate gained approximately €26 million in cash flows from club activities. This focused analysis provides insight into the contributions of local sports organizations to regional economies, highlighting the potential for sustainable and incremental impacts from regular sporting events.

Several researchers emphasize methodological considerations and the risk of bias. Kwiatkowski et al. (2015) examined the methodological challenges in impact assessments, such as double-counting visitors and biases introduced by political agendas. Their review underscores the necessity of reliable data collection, accurate visitor measurement, and careful interpretation to produce credible and useful results.

Finally, meta-analyses like Li and Jago (2012) synthesize key trends in economic impact research, advocating for updated models and consistent data collection to enhance future evaluations. Their recommendations promote ongoing methodological advancements and the importance of comprehensive data for policy relevance.

Overall, the reviewed literature illustrates that the economic impact of sports events varies widely based on event size, location, methodology, and socio-economic context. Employing advanced models such as CGE, careful primary data collection, and multi-method approaches enhances the accuracy and relevance of impact assessments. For policymakers, understanding these nuances is crucial for designing events that maximize economic benefits while minimizing costs and potential biases. Future research should continue refining methodologies and incorporating broader socioeconomic variables to deepen insights into the complex effects of sports events on host regions.

References

• Agha, N., & Taks, M. (2016). A Theoretical Comparison of the Economic Impact of Large and Small Events. International Journal of Sport Finance.
• Allan, G. J., et al. (2016). The Impacts of Temporary but Anticipated Tourism Spending: An Application to the Glasgow 2014 Commonwealth Games. Tourism Management.
• Angel, Barajas, et al. (2010). Beyond Retrospective Assessment. Sport Event Economic Impact Studies as a Management Tool for Informing Event Organization. European Research on Management and Business Economics.
• Choong-Ki, Lee, et al. (2004). Critical Reflections on the Economic Impact Assessment of a Mega-event: The Case of 2002 FIFA World Cup. Tourism Management.
• Gratton, C., et al. (2006). The Direct Economic Impact of Major Sports Events: a review of ten events in the UK. Sociological Review.
• Jimenez-Naranjo, et al. (2015). Cost–benefit Analysis of Sport Events: The Case of World Paddle Tour. European Research on Management and Business Economics.
• Huang, H., & Zhang, J. J. (2014). Assessing the Economic Impact of Three Major Sport Events in China: The Perspective of Attendees. Tourism Economics.
• Klimko, P. (2017). The Economic Impact of Mega Sports Events. Economic Review.
• Konecke, T., et al. (2015). Direct regional economic impact of Germany’s 1. FC Kaiserslautern through participation in the 1. Bundesliga. Soccer & Society.
• Kwiatkowski, G., et al. (2015). Economic Impact of Events and Festivals on Host Regions – Methods in Practice and Potential Sources of Bias. POI.J. Sport Tourism.