Do the rich get richer? Exploring disparate effects of hosting sport mega events on high technology exports for developed and developing nations

Abstract

Plenty of research has investigated the relationship between exports and economic growth. Because positive linkages are regarded as situational, research investigated a range of covariates that could moderate the relationship. One variable that has received scant attention is whether or not an economy hosted a mega sport event (MSE). MSEs spur massive technological projects that must be undertaken to prepare the locale. Three characteristics of MSEs make them of interest: they require significant influxes of scarce resources, additional rents from disrupted markets spillover to non-event contexts, and MSEs’ international scale provides opportunities for cross-border relationships. The analysis investigates the effect of a MSE on host nations’ high technology exports (HTX). Results suggest that hosting a MSE was generative of HTX for Developed nations, but not for Developing nations. This holds implications for (1) academics seeking to develop theories supporting a linkage between MSEs and entrepreneurial rents, and (2) practitioners seeking to develop optimal trade relationships.