Olympics has positive economic impact on both winning - and losing - bidders

Hosting the Olympic games has a positive impact on a country's economy, giving a powerful boost to exports, according to academic research - but the benefits are just as strong for unsuccessful bidders. Governments go to extraordinary lengths to secure the two-week event. However, using a statistical model, Andrew Rose of the Haas School of Business at the University of California and Mark Spiegel of the San Francisco Federal Reserve show that the 30% uplift in exports enjoyed by successful bidders is shared by countries that lose out - and they don't have to spend billions on athletics tracks and velodromes. The authors suggest this may be because by offering to host the games, governments are sending a "costly policy signal" to the world that they are ready and open for business. Beijing won... [read full story]                    

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