THE INFLUENCE OF COVID-19 AND THE OLYMPIC GAMES ON THE MARKET BUSINESS OF JAPAN
DOI:
https://doi.org/10.58984/smb2301007dKeywords:
Olympic Games, COVID-19, Japan, market businessAbstract
The Summer Olympics are the largest international sporting event in the world. Over 200 sports nations take part in them every 4 years and represent a real organizational challenge for the host country. The organization of the games requires large financial resources that the host country would have to allocate. The Tokyo Olympics in 2020 faced unprecedented challenges due to the COVID-19 pandemic, which increased the price of the games, which is already a record. Economists and organizers predicted that the Games in Tokyo would have an impact of as much as 292 billion dollars on the overall economy of Japan. Economists in Japan have raised expectations that the Tokyo Olympics will sharply strengthen not only the country's tourism industry, but also the construction business, while encouraging consumption, which together would increase Japan's market business. With the appearance of the corona virus, the Olympics were postponed for one year, which eventually led to a ban on watching at the venue of the postponed event. These bans, on the one hand, increased the cost of maintenance three times, and on the other hand, reduced revenues several times, which had a great impact on the Japanese market. This paper investigates the impact of covid-19 and the Olympic Games on Japan's market operations using regression and correlation analysis. Based on the analysis, the negative impact of Covid-19 on the market operations of Japan and the positive impact of the Olympics, especially in the year of maintenance, were proven, regardless of the fact that additional funds were invested.
Downloads
References
Barrero, J M, N Bloom and S J Davis (2020): “COVID-19 Is Also a Reallocation Shock”, NBER Working Paper 27137.
Furrer, P. (2002): Sustainable Olympic Games: utopia or reality?. Bollettino della Societ`a Geografica Italiana,series XII, volume VII, 4. Translated by Demetrio, V.
Hotchkiss, J.L., Moore, R.E. and Rios-Avila, F. (2015): Re-evaluation of the employment impact of the 1996 Summer Olympic Games. Southern Economic Journal 81(3): 619–632.
Hotchkiss, J.L., Moore, R.E. and Zobay, S.M. (2003): Impact of the 1996 Summer Olympic Games onemployment and wages in Georgia. Southern Economic Journal 69(3): 691–704.
Humphreys, J.M. and Plummer, M.K. (1995): The economic impact on the State of Georgia of hosting the 1996.
Humphreys, J.M. and Plummer, M.K. (1995): The economic impact on the State of Georgia of hosting the 1996 Olympic Games. Selig Center for Economic Growth, Georgia.
Jasmand, S. and Maennig, W. (2007): Regional Income and Employment Effects of the 1972 Munich Olympic Summer Games. Regional Studies, 42(7): 991–1002.
Kolluru, D. M. K. (2021): A study of global recession recovery strategies in highly ranked gdp eu countries economics, 9(1), 85-106. https://doi.org/10.2478/eoik-2021-0011
Koren, M and R Pető (2020): “Business Disruptions from Social Distancing”, Covid Economics, Vetted and Real-Time Papers 2, CEPR Press. Also VoxEU.org column.
Lenskyj, H.J. (2000): Inside the Olympic Industry: Power, Politics, and Activism. Albany: State University of New York Press.
Maliszewska, Maryla; Mattoo, Aaditya; van der Mensbrugghe, Dominique. (2020): The Potential Impact of COVID-19 on BDP and Trade : A Preliminary Assessment. Policy Research Working Paper;No. 9211. World Bank, Washington, DC. © World Bank. (available at: https://openknowledge.worldbank.org/handle/10986/33605). License: CC BY 3.0 IGO.
Olympic Games. Selig Center for Economic Growth, Georgia.
Pasquale, L.S. and Pierleoni M.R. (2017): Assessing the Olympic Games: the economic impact and beyond. Journal of Economic surveys 2018. https://doi.org/10.1111/joes.12213
Policy Responses to COVID-19, IMF, (available at: https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19).
Preuss, H. (2004): The economics of staging the Olympics: a comparison of the Games, 1972–2008. Cheltenham: Edward Elgar Publishing Ltd.
Shoval, N. (2012): A new phase in the competition for the Olympic Gold: the London and New York Bids forthe 2012 Games. Journal of Urban Affairs 24(5): 583–599.
Sterken, E. (2006): Growth impact of major sporting events. European Sport Management Quarterly 6(4):
Sterken, E. (2006): Growth impact of major sporting events. European Sport Management Quarterly 6(4):375–389.