Mega Events and Their Impact On the Economy

Mega Events and Their Impact On the Economy- Kartik Agrawal & Nandini Agarwal

Abstract:
Since the 1980s the hosting of various Sporting Mega-events like FIFA and Olympics has become fiercely competitive with politicized bidding processes and strict hosting requirements. Host nations are willing to commit billions of dollars towards the process with the hope ofextracting large returns and advertise their nation and cities on a global platform. However, the available evidence reflects otherwise and shows that returns from these projects on various sectors of the economy have been quite limited in nature. Looking at multiple economic sectors, this paper finds that a careful analysis is needed while undertaking to host these events. This paper also highlights various problems within both the selection process and various committees like IOC or FIFA that select the hosting country for such events. We provide suggestions on how the budget allocation could be done and concerns that need to be addressed while hosting these events. These solutions could help derive maximum utility and efficiency of the budget thus allocated. . (Read Full Paper)