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• W230856412 abstract "AbstractThis study applies the stochastic frontier approach to estimate the technical efficiency of a group of Chinese cities which have hosted mega events such as the Olympic Games and Asian Games, etc. since 2000s. The purpose is to assess if their efficiency level can be strengthened in the process of event preparation. In the empirical analyses, it is observed that no significant improvement on technical efficiency can be achieved by the event hosting cities. The level of technical efficiency of the event hosting cities has even slightly declined in the event decade. Investment to gross domestic product (GDP) ratio is found to have positive linkages with technical efficiency, but it has not expanded satisfactorily to bring about significant efficiency improvement. Economic transition toward service sector with no comparative advantage, meanwhile, tends to discount efficiency. In general, hosting an event can only bring about short-lived contributions to benefits but not significant efficiency improvement. Policy makers should be cautious in the future before making their decisions to host mega events.Keywords: mega events, China, stochastic frontier analysis, technical efficiencyJEL classification: D24, 047(ProQuest: ... denotes formulae omitted.)1. Introduction1In the aftermath of the London 2012 Olympic Games, the costs, benefits and appropriateness of hosting an international event have become popular topics once again. In practice, the organization of a mega event, such as the Olympic Games, incurs huge amount of capital investment for the construction and renovation of infrastructures and stadiums. While the infrastructure investment serves as direct fiscal stimulus to the economy, the mega event may be able to boost the prestige of the hosting city which can help to attract more visitors to strengthen the tourism industry. Given this belief, many countries have attempted to bid for the organization of mega international events. Japan, Korea and China, for example, are some of the countries in Asia which have successfully organized the Olympic Games.In Wang (2002), the contributions of Tokyo 1964 and Seoul 1988 Olympic Games to the economy are discussed and stronger growth and job creations are observed as the positive impacts2. As remarked, the infrastructure investment made in the process has played a significant role. Nevertheless, there is still no guaranteed net gain to the hosting city. The Athens 2004 Olympic Games, meanwhile, cannot boost the growth rate of Greece significantly and is regarded as a failure in sense. In light of the Los Angeles 1984 Olympic Games and Atlanta Games 1996 Games, they can just bring about transitory impacts to employment with no long-run contributions at all (Baade and Matheson, 2002). The remark economic benefits should be considered weak at best (Coates and Humphreys, 2003 : 347) is drawn to describe the impacts of sport events to the local economy. Pessimistic remarks can also be found in some studies in which the long-term contributions of Olympic Games to the economy are questioned (Sterken, 2006; Madden, 2006; Andersson, Armbrecht and Lundberg, 2008). In Madden (2006), with the Sydney 2000 Olympic Games as the example, the issue of consumption diversion from normal goods and services to Olympic Games related consumption is discussed. In Andersson, Armbrecht and Lundberg (2008), the extent of development in tourism industry is used as the criteria to assess the contributions of the Olympic Games. While studies conducted by independent researchers carry diversified positions toward event hosting, projections made by the authorities of the hosting cities are normally more optimistic. In Yu (2004)3, for example, the impacts of the 2009 East Asian Games to Hong Kong are projected and it is believed that the Games can generate quantifiable benefits as well as higher city profile for Hong Kong. …" @default.
• W230856412 created "2016-06-24" @default.
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• W230856412 date "2013-04-01" @default.
• W230856412 modified "2023-09-23" @default.
• W230856412 title "Can Chinese Cities Achieve Higher Technical Efficiency after Hosting Mega Events" @default.
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