IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v16y2010i3p611-628.html
   My bibliography  Save this article

Disentangling the Effects on the Korean Economy of the 9/11 Terrorist Attacks from the Short-Run Effects of Hosting the 2002 World Cup, Using the Cge Model

Author

Listed:
  • Choong-Ki Lee

    (College of Hotel and Tourism, Kyunghee University, 1 Hoegi-dong, Dongdaemun-gu, Seoul, Korea)

  • Seogwoong Moon

    (Chair-Research Fellow, Busan Development Institute, Yangjung dong 273-20, Busan Jin-gu, Busan, Korea)

  • James W. Mjelde

    (Department of Agricultural Economics, Texas A&M University, College Station, TX 77843-2124, USA)

Abstract

The short-term effects of hosting the 2002 World Cup on the Korean economy are examined. Simulations using a computable general equilibrium model are carried out in a short-run framework, where the shock level was taken from the percentage changes in foreign tourism receipts observed between 2000 and 2002. Because of the dramatic events that occurred before and after 2002, the effect of these events must be removed to estimate the effects of the World Cup on the Korean economy. Using time series forecasting models, attempts are made to isolate the impacts of the 9/11 terrorist attacks from the impact of the World Cup. The results suggest that hosting the World Cup had a positive impact on the economy. This positive impact, however, is smaller than the negative impact of the 9/11 attacks. These differences explain the downturn in the Korean tourism industry and economy in 2002.

Suggested Citation

  • Choong-Ki Lee & Seogwoong Moon & James W. Mjelde, 2010. "Disentangling the Effects on the Korean Economy of the 9/11 Terrorist Attacks from the Short-Run Effects of Hosting the 2002 World Cup, Using the Cge Model," Tourism Economics, , vol. 16(3), pages 611-628, September.
    • Handle: RePEc:sae:toueco:v:16:y:2010:i:3:p:611-628
    DOI: 10.5367/000000010792278455
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/000000010792278455
    Download Restriction: no
    File URL: https://libkey.io/10.5367/000000010792278455?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert Baade & Victor Matheson, 2004. "The Quest for the Cup: Assessing the Economic Impact of the World Cup," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 343-354.
    2. Kasimati, Evangelia & Dawson, Peter, 2009. "Assessing the impact of the 2004 Olympic Games on the Greek economy: A small macroeconometric model," Economic Modelling, Elsevier, vol. 26(1), pages 139-146, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. MASSIANI, Jérôme, 2022. "Computable General Equilibrium assessment of mega-events: Issues and possible solutions," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 920-942.
    2. Massiani, Jerome, 2019. "CGE Analysis of Mega Events: A Timely Issue," Conference papers 333109, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Jeremy Wood & Samuel Meng, 2021. "The economic impacts of the 2018 Winter Olympics," Tourism Economics, , vol. 27(7), pages 1303-1322, November.
    4. Narayan, Paresh Kumar & Sharma, Susan Sunila & Bannigidadmath, Deepa, 2013. "Does tourism predict macroeconomic performance in Pacific Island countries?," Economic Modelling, Elsevier, vol. 33(C), pages 780-786.
    5. Nicolau, Juan L., 2012. "The effect of winning the 2010 FIFA World Cup on the tourism market value: The Spanish case," Omega, Elsevier, vol. 40(5), pages 503-510.
    6. Massiani, Jérôme, 2018. "Assessing the economic impact of mega events using Computable General Equilibrium models: Promises and compromises," Economic Modelling, Elsevier, vol. 75(C), pages 1-9.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michał Marcin Kobierecki & Michał Pierzgalski, 2022. "Sports Mega-Events and Economic Growth: A Synthetic Control Approach," Journal of Sports Economics, , vol. 23(5), pages 567-597, June.
    2. Byers, Terri & Hayday, Emily & Pappous, Athanasios (Sakis), 2020. "A new conceptualization of mega sports event legacy delivery: Wicked problems and critical realist solution," Sport Management Review, Elsevier, vol. 23(2), pages 171-182.
    3. Christopher Vierhaus, 2019. "The international tourism effect of hosting the Olympic Games and the FIFA World Cup," Tourism Economics, , vol. 25(7), pages 1009-1028, November.
    4. Fourie, Johan & Santana-Gallego, María, 2011. "The impact of mega-sport events on tourist arrivals," Tourism Management, Elsevier, vol. 32(6), pages 1364-1370.
    5. Andrzej Torój, 2016. "Regional Economic Impact Assessment with Missing Input-Output Data: A Spatial Econometrics Approach for Poland," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 8(2), pages 61-91, June.
    6. Gulijiazi Yeerkenbieke & Chunci Chen & Guizhen He, 2021. "Public Perceived Effects of 2022 Winter Olympics on Host City Sustainability," Sustainability, MDPI, vol. 13(7), pages 1-20, March.
    7. Baumann Robert & Engelhardt Bryan & Matheson Victor A., 2012. "Employment Effects of the 2002 Winter Olympics in Salt Lake City, Utah," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 308-317, June.
    8. Florian Hagn & Wolfgang Maennig, 2007. "Labour Market Effects of the 2006 Soccer World Cup in Germany," Working Papers 008, Chair for Economic Policy, University of Hamburg.
    9. Peter A. Groothuis & Kurt W. Rotthoff, 2016. "The Economic Impact and Civic Pride Effects of Sports Teams and Mega-Events: Do The Public and the Professionals Agree?," Economic Affairs, Wiley Blackwell, vol. 36(1), pages 21-32, February.
    10. M.R. van den Berg & M. de Nooij, 2013. "The bidding paradox: why economists, consultants and politicians disagree on the economic effects of mega sports events but might agree on their attractiveness," Working Papers 13-08, Utrecht School of Economics.
    11. Martin Thomas Falk & Markku Vieru, 2021. "Short-term hotel room price effects of sporting events," Tourism Economics, , vol. 27(3), pages 569-588, May.
    12. Victor A. Matheson, 2005. "Contrary Evidence on the Economic Effect of the Super Bowl on the Victorious City," Journal of Sports Economics, , vol. 6(4), pages 420-428, November.
    13. Pete Groothuis & Kurt W. Rotthoff, 2014. "Surveying the Literature and the People: The Economic Impact of Sports Teams and Civic Pride," Working Papers 14-05, Department of Economics, Appalachian State University.
    14. Stan du Plessis & Wolfgang Maennig, 2012. "The 2010 FIFA World Cup High-frequency Data Economics: Effects on International Tourism and Awareness for South Africa," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 27, Edward Elgar Publishing.
    15. Veysel Avsar & Umut Unal, 2014. "Trading Effects of the FIFA World Cup," Kyklos, Wiley Blackwell, vol. 67(3), pages 315-329, August.
    16. Kasimati, Evangelia & Veraros, Nikolaos, 2013. "Should Greece adopt a dual-currency regime to resolve its economic crisis?," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 588-600.
    17. Sun, Ya-Yen & Rodriguez, Ariel & Wu, Jih-Hwa & Chuang, Shu-Tzu, 2013. "Why hotel rooms were not full during a hallmark sporting event: The 2009 World Games experience," Tourism Management, Elsevier, vol. 36(C), pages 469-479.
    18. Robert Baumann & Victor Matheson, 2013. "Infrastructure Investments and Mega-Sports Events: Comparing the Experience of Developing and Industrialized Countries," Working Papers 1305, College of the Holy Cross, Department of Economics.
    19. Robert W. Baumann & Victor A. Matheson, 2017. "Many happy returns? The Pro-Bowl, mega-events, and tourism in Hawaii," Tourism Economics, , vol. 23(4), pages 788-802, June.
    20. Michiel de Nooij & Marcel van den Berg & Carl Koopmans, 2013. "Bread or Games?," Journal of Sports Economics, , vol. 14(5), pages 521-545, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:16:y:2010:i:3:p:611-628. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.