The effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation

The expediency of hosting large-scale sport events (LSE), such as the Summer and Winter Olympic Games, FIFA World Cup and EUFA European Championship, is a matter of public and scientific discussion. The main argument against hosting large-scale sport events is the substantial direct financial losses...

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Autores principales:	I. M. Drapkin, S. A. Lukyanov
Formato:	article
Lenguaje:	EN RU
Publicado:	MGIMO University Press 2019
Materias:	major sport events foreign direct investment olympic games fifa world cup uefa european championship effects of hosting major sports events International relations JZ2-6530
Acceso en línea:	https://doaj.org/article/7e659db448394614a4691597f9a338c5
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spelling	oai:doaj.org-article:7e659db448394614a4691597f9a338c52021-11-23T14:50:39ZThe effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation2071-81602541-909910.24833/2071-8160-2019-6-69-167-187https://doaj.org/article/7e659db448394614a4691597f9a338c52019-12-01T00:00:00Zhttps://www.vestnik.mgimo.ru/jour/article/view/1086https://doaj.org/toc/2071-8160https://doaj.org/toc/2541-9099The expediency of hosting large-scale sport events (LSE), such as the Summer and Winter Olympic Games, FIFA World Cup and EUFA European Championship, is a matter of public and scientific discussion. The main argument against hosting large-scale sport events is the substantial direct financial losses for an organizing country in most cases. Moreover, local residents often oppose hosting major sport events because of price increase and different inconveniences in their everyday life. At the same time the effects of hosting large-scale events have long-term nature and go beyond direct financial benefits. One of the difficulties in estimating the effects of LSE is that they are hard to measure.The literature review shows the deficit of research on how large-scale events influence the foreign direct investment inflows in the hosting country. In contrast to numerous papers on LSE influence on economic growth, foreign trade, international tourist flows, the authors found only one article devoted to LSE influence on FDI inflows. The present paper analyzes the influence of major sport events on foreign direct investment flows to the hosting country. The estimated database comprises data for 195 countries for the period of 1970–2018, 24 out of which hosted or will host 48 major sport events. The regression analysis indicates that LSE induce significant influence on foreign direct investment flows in the hosting economy. Comparing several models, we show that the most reliable is the model where hosting LSE positively influence on FDI inflows within the period starting 8 years before and ending 4 years after the event. We explain the result by the following. Firstly, fostering economic growth due to hosting LSE serves as a catalyst of foreign direct investment inflows. Secondly, LSE improves image of the hosting country abroad that positively affects the attractiveness of the country to foreign investors. Thirdly, the growing openness of the economy due to LSE (expressed for example in growth of international trade) positively affects the FDI inflows.The authors declare the absence of conflict of interests.I. M. DrapkinS. A. LukyanovMGIMO University Pressarticlemajor sport eventsforeign direct investmentolympic gamesfifa world cupuefa european championshipeffects of hosting major sports eventsInternational relationsJZ2-6530ENRUVestnik MGIMO-Universiteta, Vol 12, Iss 6, Pp 167-187 (2019)
institution	DOAJ
collection	DOAJ
language	EN RU
topic	major sport events foreign direct investment olympic games fifa world cup uefa european championship effects of hosting major sports events International relations JZ2-6530
spellingShingle	major sport events foreign direct investment olympic games fifa world cup uefa european championship effects of hosting major sports events International relations JZ2-6530 I. M. Drapkin S. A. Lukyanov The effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation
description	The expediency of hosting large-scale sport events (LSE), such as the Summer and Winter Olympic Games, FIFA World Cup and EUFA European Championship, is a matter of public and scientific discussion. The main argument against hosting large-scale sport events is the substantial direct financial losses for an organizing country in most cases. Moreover, local residents often oppose hosting major sport events because of price increase and different inconveniences in their everyday life. At the same time the effects of hosting large-scale events have long-term nature and go beyond direct financial benefits. One of the difficulties in estimating the effects of LSE is that they are hard to measure.The literature review shows the deficit of research on how large-scale events influence the foreign direct investment inflows in the hosting country. In contrast to numerous papers on LSE influence on economic growth, foreign trade, international tourist flows, the authors found only one article devoted to LSE influence on FDI inflows. The present paper analyzes the influence of major sport events on foreign direct investment flows to the hosting country. The estimated database comprises data for 195 countries for the period of 1970–2018, 24 out of which hosted or will host 48 major sport events. The regression analysis indicates that LSE induce significant influence on foreign direct investment flows in the hosting economy. Comparing several models, we show that the most reliable is the model where hosting LSE positively influence on FDI inflows within the period starting 8 years before and ending 4 years after the event. We explain the result by the following. Firstly, fostering economic growth due to hosting LSE serves as a catalyst of foreign direct investment inflows. Secondly, LSE improves image of the hosting country abroad that positively affects the attractiveness of the country to foreign investors. Thirdly, the growing openness of the economy due to LSE (expressed for example in growth of international trade) positively affects the FDI inflows.The authors declare the absence of conflict of interests.
format	article
author	I. M. Drapkin S. A. Lukyanov
author_facet	I. M. Drapkin S. A. Lukyanov
author_sort	I. M. Drapkin
title	The effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation
title_short	The effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation
title_full	The effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation
title_fullStr	The effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation
title_full_unstemmed	The effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation
title_sort	effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation
publisher	MGIMO University Press
publishDate	2019
url	https://doaj.org/article/7e659db448394614a4691597f9a338c5
work_keys_str_mv	AT imdrapkin theeffectsoflargescalesporteventsonforeigndirectinvestmentinflowstheresultsofempiricalestimation AT salukyanov theeffectsoflargescalesporteventsonforeigndirectinvestmentinflowstheresultsofempiricalestimation AT imdrapkin effectsoflargescalesporteventsonforeigndirectinvestmentinflowstheresultsofempiricalestimation AT salukyanov effectsoflargescalesporteventsonforeigndirectinvestmentinflowstheresultsofempiricalestimation
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The effects of large-scale sport events on foreign direct investment inflows: the results of empirical estimation

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