Spillover Effects Of Major Sporting Events On The Development Of Host Cities From The Perspective Of Externality Theory

As scarce resources,major sporting events have been attracting more and more attention in today’s wave of globalization and urbanization.More and more countries and cities want to seize the chance to host major sporting events to win development opportunities.This study’s core purpose is to make sure whether major sporting events can really boost the economic development of host cities.Above all,this study takes from economics perspective,puts externalities theory as the theoretical research basis,with the help of econometric analytical methods to figure out the theoretical context,making a connect with empirical analysis.Four methods:the documentary law method,statistical analysis,panel data analysis,and the PSM tendency score matching method were used to conduct an empirical analysis of the panel data of 63 cities in China from 2000 to 2019.Specifically,the theoretical basis of this study is consolidated by the literature method,the four research hypotheses proposed in this paper are tested by the panel double fixed effect,and to make sure the conclusions of this study are true and reliable,we used PSM to make tests about the robustness.The results of the study show that:（1）major sporting events as key urban events can significantly have incentives to host cities’ economic developments.（2）major sporting events will produce different effects on different cities.（3）There will be lag-effects of mega-sports-events on the host cities’ economic development.（4）Compared with the primary and secondary industries,major sporting events will produce more significant effects on the tertiary industry,this will be good to its economy development.This study confirms the four hypotheses through the panel double fixed effect model and PSM analysis method,and passed the robustness test respectively,which shows that the conclusions we put forward are true and reliable.According to this,four suggestions matching the conclusions are proposed:（1）Optimize the allocation of effective resources to promote the healthy development of the sports event industry.（2）Scientifically evaluate the benefits of the event,and reasonably match the strength of the city and the scale of the event.（3）Give play to the role of policy guidance and continue to stimulate the catalyst effect of sports events.（4）Deepen the concept of rejuvenating sports through science and technology,and diversify the source of economic development of sports events.