GDP Growth in France
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THE PENNSYLVANIA STATE UNIVERSITY SCHREYER HONORS COLLEGE DEPARTMENT OF ACCOUNTING ECONOMIC EFFECTS OF HOSTING THE OLYMPICS MARY BYRNE SPRING 2016 A thesis submitted in partial fulfillment of the requirements for baccalaureate degrees in Accounting and Finance with honors in Accounting Reviewed and approved* by the following: Orie Barron Professor of Accounting Thesis Supervisor Henock Louis Professor of Accounting Honors Advisor * Signatures are on file in the Schreyer Honors College. ii ABSTRACT The Olympic games have recently been criticized as an economic burden instead of a once heavily coveted international sporting event. While many have studied the economic benefits of the Olympic games, the purpose of this thesis is to specifically focus on particular economic indicators in years of hosting the largest sporting event of the world. This thesis explores the history of eleven different games held in ten different countries. It studies the respective Gross Domestic Product, National Net Income per Capita, and Unemployment Rate of each country before and after hosting the games while considering historical events. This thesis assesses changes in GDP per Capita growth rates, Net National Income per Capita growth rates, and Unemployment rates for host countries in the both the year of the games and the subsequent year. This study compares the economic effects of hosting the Olympics in both small and large economies. Finally, this thesis concludes that the economic effect of hosting the Olympics cannot be evidenced on a national level through the selected indicators. iii TABLE OF CONTENTS List of tables ................................................................................................................. iv Acknowledgements ...................................................................................................... v Chapter 1 Introduction ................................................................................................. 1 Chapter 2 Literature Review ........................................................................................ 3 Chapter 3 Methodology ............................................................................................... 7 Chapter 4 Economic Indicators .................................................................................... 10 Chapter 5 France .......................................................................................................... 12 Chapter 6 Spain ............................................................................................................ 16 Chapter 7 Norway ........................................................................................................ 21 Chapter 8 United States: Atlanta .................................................................................. 24 United States: Salt Lake City ....................................................................................... 25 Chapter 9 Japan ............................................................................................................ 29 Chapter 10 Australia .................................................................................................... 32 Chapter 11 Greece........................................................................................................ 35 Chapter 12 Italy............................................................................................................ 38 Chapter 13 China ......................................................................................................... 41 Chapter 14 Canada ....................................................................................................... 44 Chapter 14 The Year of the Games .............................................................................. 47 Chapter 15 One Year Later .......................................................................................... 51 Chapter 16 Small Economies ....................................................................................... 54 Conclusion ................................................................................................................... 58 Appendix A: GDP per Capita Growth (Year of Games) ............................................. 62 Appendix B: GDP per Capita Growth (Year After Games) ........................................ 63 iv Appendix C: Net National Income per Capita Growth (Year of Games) .................... 64 Appendix D: Net National Income per Capita Growth (Year Following Games) ...... 65 Appendix E: Unemployment Rate Change (Year of Games) ...................................... 66 Appendix F: Unemployment Rate Change (Year After Games) ................................. 67 BIBLIOGRAPHY ........................................................................................................ 68 v List of Tables Table 1: List of Host Countries Studied ................................................................................... 7 Table 2: GDP Growth in France .............................................................................................. 13 Table 3: Net Income Per Capita in France ............................................................................... 14 Table 4: France Unemployment Rate ...................................................................................... 15 Table 5: Spain GDP Growth .................................................................................................... 18 Table 6: Spain Net Income per Capita ..................................................................................... 19 Table 7: Spain Unemployment Rate ........................................................................................ 19 Table 8: Norway GDP Growth ................................................................................................ 22 Table 9: Norway Net Income Per Capita ................................................................................. 22 Table 10: Norway Unemployment Rate .................................................................................. 23 Table 11: U.S. GDP Growth .................................................................................................... 26 Table 12: U.S. Net Income per Capita ..................................................................................... 27 Table 13: U.S. Unemployment Rate ........................................................................................ 27 Table 14: Japan GDP Growth .................................................................................................. 30 Table 15: Japan Net Income Per Capita ................................................................................... 30 Table 16: Japan Unemployment Rate ...................................................................................... 31 Table 17: Australia GDP Growth............................................................................................. 33 Table 18: Australia Net Income per Capita ............................................................................. 33 Table 19: Australia Unemployment Rate ................................................................................. 34 Table 20: Greece GDP Growth ................................................................................................ 36 Table 21: Greece Net Income Per Capita ................................................................................. 36 Table 22: Greece Unemployment Rate .................................................................................... 37 Table 23: Italy GDP Growth .................................................................................................... 39 Table 24: Italy Net Income per Capita ..................................................................................... 39 vi Table 25: Italy Unemployment Rate ........................................................................................ 40 Table 26: China GDP Growth .................................................................................................. 42 Table 27: China Net Income per Capita ................................................................................... 43 Table 28: China Unemployment Rate ...................................................................................... 43 Table 29: Canada GDP Growth ............................................................................................... 45 Table 30: Canada Net Income per Capita ................................................................................ 46 Table 31: Canada Unemployment Rate ................................................................................... 46 vii ACKNOWLEDGEMENTS I first and foremost would like to thank my family for their continuous support. My parents were always encouraging throughout my thesis-writing process, even when I was lost on choosing a new topic after completely scratching an original idea. My friends provided advice on writing my thesis from various experiences and were also incredibly supportive. I would also like to thank Dr. Orie Barron, my thesis advisor. Dr. Barron provided me with essential information regarding how to write my thesis and guided me through countless topic selection processes. I also appreciate all of the support received from the Schreyer Honors College throughout my study and for the opportunity to write my thesis. 1 Chapter 1 Introduction Since the modern Olympics began in 1896, host