The Role of 28 Beijing Olympic Games in the Construction of China

the Olympic movement contains huge business opportunities, and the Olympic economy has become an important form of modern economic development. The economic impact of the Olympic Games is a kind of demand shocks. However, this kind of impact is short-lived, especially during the Olympic Games, forming a "peak effect" of demand.

The economic impact of the Olympic Games is mainly realized through income and expenditure, input and output. The expenditure of hosting the Olympic Games is the economic investment in the host city. The economic impact of the Olympic Games on the host city is closely related to the investment in the Olympic Games. Within the marginal cost, the greater the investment, the greater the economic impact.

compared with the industrialized countries such as the United States and Australia, Beijing needs to build or renovate more infrastructure and more construction funds to host the 28 Olympic Games. The related investment for the 28 Olympic Games will be about 35 billion US dollars. The Olympic Games will contribute to the economic development of the host country, and help solve difficult economic problems such as labor employment and economic restructuring. Moreover, the economic significance of hosting the Olympic Games lies not only in the year of the Olympic Games, but also in a period of rapid growth of 6-1 years. At the same time, it should be pointed out that at the end of the Olympic investment cycle, due to the sudden stall of investment, it will bring adverse effects to the economic development of the host city and host country, so we should consider not only the economic and social benefits during the Olympic Games, but also the economic security after the Olympic Games.

According to the analysis and calculation of China's endogenous economic growth model, the Beijing Olympic Games contributes .3%-.5% to China's GDP growth every year. After 1 years of development, the modern Olympic Movement has developed into the largest activity for peaceful purposes in human history. The Olympic Games have the characteristics of global, sustained, comprehensive, super-large, high cultural connotation, long preparation time, huge investment, large number of participants and high competition level. It has become an eye-catching activity with great comprehensive social, economic, political and cultural effects, and has been widely concerned by governments and people, public opinion and business groups all over the world. The influence of the Olympic Games has surpassed any other social and cultural activities today.

The success of Beijing's bid for the Olympic Games indicates that the social economy in Beijing may gain faster development by hosting the Olympic Games. The 28 Olympic Games will have the following main impacts on Beijing's social economy:

(1) Positive impacts

1. Through the analysis of the cost and income budget system, it is concluded that if the expenditure does not include the expenditure on infrastructure, better economic benefits can be obtained

The sources of income from hosting the Olympic Games can be divided into: the mode of hosting the Olympic Games; The mode of relying entirely on marketing income; Relying on the mode of marketing, supplemented by government investment. According to the expenditure of Los Angeles Olympic Games, Montreal Olympic Games and Barcelona Olympic Games, we can learn from Beijing's efforts to increase revenue, reduce expenditure, expand influence and realize sustainable development in 28 Olympic Games to avoid more problems.

The discussion on the economic impact mechanism of the Olympic Games shows that the Olympic Games first affects the expenditure, image and technology of the host country, and then finally reflects the changes in output, income, employment and economic growth through the interactive mechanism in the economic system. According to the research on the economic impact of the 1992 Barcelona Olympic Games, the 1996 Atlanta Olympic Games and the 2 Sydney Olympic Games, the operating profit and net economic benefit of the Olympic Games are positive. The absolute value of the economic impact of the Olympic Games is relatively large; The intensity of the economic impact of the Olympic Games is not large; The industries benefiting from the Olympic Games are relatively concentrated; Olympic Games urges the host city to increase infrastructure investment; There are differences in the economic impact of the Olympic Games.

According to the inbound tourism effect of Olympic Games since 198s, the author shows that the inbound tourism effect of Olympic Games is obvious, but domestic tourism is not outstanding. The main benchmark of Olympic tourism activities is in the host city and region, and the regional diffusion effect is not outstanding. From the numerical point of view, the intensity of Olympic tourism effect is not as great as people think. However, the Olympic Games has a good effect on improving the image of the host city. The prediction of the tourism and economic impact of the Olympic Games should be rational.

It is worth noting that the economic impact of the Olympic Games on the host city includes both positive and negative impacts. Among the positive effects, the direct effects include promoting the growth of GDP, employment, the development of related industries and the improvement of investment environment in the host city. Indirect effects include improving human capital and promoting regional economic development. The negative impact refers to the idleness of sports facilities, the damage to the lives of non-beneficiaries in cities, and the increase of extra social expenditure.

2. The economic growth rate of the Beijing-Tianjin-Hebei region has reached 1.23% due to the Olympic Games, which has created 2.1 million jobs for China.

The way for the Olympic Games to increase the Beijing-Tianjin-Hebei region is reflected in the economic agglomeration effect. Through analysis, it is concluded that the role of economies of scale generated by the Beijing Olympic Games economy is manifested in the economic agglomeration brought about by the expansion of exports to the Beijing-Tianjin-Hebei region, and new enterprises and laborers will be attracted to this region. This will reduce the cost of regional economy and improve the competitiveness of products. This is a dynamic process, because with the increase of agglomeration effect, the economic cost of Beijing-Tianjin-Hebei region turns to rise, which in turn produces the "diffusion effect" of economic activities shifting to other regions.

By analyzing the dynamic regional economic impact of Beijing Olympic Games from this angle, it is concluded that the host city Beijing will have an "overflow" demand effect due to hosting the Olympic Games, and Beijing will spread economic, tourism and transportation activities to Hebei and Tianjin due to the rising economic and social costs, so the economy will increase by 1.23%.

Statistics from the New South Wales Finance Bureau of Australia show that there is a great demand for labor for hosting the Olympic Games in Sydney in 2. According to the situation in China, most of the current unemployment is structural unemployment rather than cyclical unemployment. Considering the supply factors of the Beijing government in the Olympic economic system and the supply elasticity of the Olympic economy to the labor market, the number of jobs will increase even more in the face of the positive short-term demand shocks of the Olympic Games. By 28, the Olympic economy has provided 2.1 million jobs for China. These 2.1 million employment opportunities are: first, the employment brought by the construction of projects needed for the Olympic Games and the permanent use of special personnel after the Olympic Games; Second, by hosting the Olympic Games, Beijing's urban infrastructure and environment will be greatly improved, which will attract more new investment and tourism for the city, which will create a large number of employment opportunities; Third, by hosting the Olympic Games, Beijing citizens who participate in the Olympic Games need corresponding education and training, thus improving human capital, enhancing competitiveness and increasing employment opportunities.

3. The Beijing Olympic Games will increase China's economy by .3%-.5% and Beijing's economy by 2%

According to the budget of Beijing's bid report for the 28 Olympic Games, BOCOG has budgeted expenditure of 1.69 billion US dollars, budgeted income of 1.625 billion US dollars and profit of 16 million US dollars. In the non-BOCOG budget, the non-BOCOG expenditure items that will occur without the Olympic Games include environmental protection, road and railway transportation and so on. The non-organizing Committee expenses incurred due to the Olympic Games include stadiums and Olympic villages, totaling $1.871 billion; The budget expenditure of non-organizing committee (city, regional or national government and private investment) totaled 14.256 billion dollars. In this way, the total expenditure related to the Olympic Games is US$ 15.865 billion, or about RMB 131.2 billion.

The economic impact (investment, consumption, export, government debt, etc.) brought by the Olympic Games can create more demand for labor and output, thus promoting the increase of domestic employment and national income in quantity (rather than long-term growth rate).

(2) Negative effects

1. The Olympic host city will attract investment from other places, which may increase the imbalance of regional economic development.

the government has just put forward the development of the western region, and the investment in the past two years is beginning to tilt towards the west. Now that Beijing is hosting the Olympic Games, an investment of 28 billion yuan at a time is equivalent to another development of the eastern region. So how can it reflect the tilt towards the west? If the east and the west tilt at the same time, does the government have such great financial resources? In addition, for a city like Shanghai that directly competes with Beijing, will Beijing's urban development affect Shanghai's attraction to international capital in the future?

2. After the closing of the Olympic Games, there are some venues and facilities built for the Olympic Games, and the utilization rate will be reduced.

3. After a large number of Olympic venues are increased, the same is true from foreign experience, which will lead to inflation.

According to the analysis and calculation of China's endogenous economic growth model, the Beijing Olympic Games contributes .3%-.5% to China's GDP growth every year. Due to the lack of empirical test on the endogenous economic growth model of large-scale sports events in China, it is still impossible to determine the time limit for the Beijing Olympic Games to promote economic growth.

after further analysis and prediction, it is concluded that the contribution rate of Beijing Olympic Games to Beijing's economic growth is 2%, because the Olympic Games will undoubtedly improve Beijing's long-term economic growth ability because of the improvement of basic resources or production process or the more intensive utilization of resources. To what extent is this improvement or increase, and in terms of the timeliness of this improvement or increase, the growth period will be around 215.

It should be pointed out that although the Olympic economy can bring about a certain demand for service industry, Therefore, for the government, it is necessary to prevent in advance, strictly control, and adopt various methods to prevent the blindness of enterprises from entering, so as to avoid the disorderly entry of enterprises with poor competitiveness; For enterprises, it is necessary to position their development strategies and objectives through risk assessment, start with improving their own capabilities, develop under a fair and reasonable market economic order, and strengthen self-discipline at the same time to avoid behaviors that are detrimental to the development of the industry, such as blind expansion of scale and vicious competition.