The Study on the Influence Channel and the Degree of Impact of Olympic Economy of Beijing

Olympic´s influence on economy is generally divided into 3 phases: the phase of Olympic´s preparation and construction (2003-2007), the phase of holding Olympics (2008) and the post-phase of Olympics (2009-2010). During the phase of Olympic´s preparation and construction, the influence on China´s economy by Olympic economy is mainly through Olympic investment that is composed of direct and indirect investment. During the phase of holding Olympics, the increase of exterior valid demand will boost economic development. During the post-phase of Olympics, fresh momentum and vigor are injected into the foreign economic trade and communications of the Olympics-holding city and country and the sustainable development of tourism after Olympic games because Olympic games can promote the celebrity of Olympics-holding city and country, enlarge the Olympic-holding city´s economic scale, and update the basic establishment of software and hardware. Olympic economy influence will elicit different degrees of impacts on different regions. This paper adopts a formalized CGE framework, uses CGE function to define the productivity factors, takes Leonfief equation to define the in-between input, makes the analysis with the dynamic recursive double-region CGE model. The model differentiates the fiscal revenue and expenses of central and regional secondary governments. Different regions are related to each other through transaction, trade and factor flow. In order to practically operate the model, social accounting matrix of Beijing and other regions of China are compiled to calculate the parameters of different models excluding elasticity value. In addition, we pre-assessed the factors influencing the Olympics and used such factors as the exogenous impact variable of the model, and quantitatively simulated the degree of influence of Olympics on Beijing and other regions of China based on the framework of CGE model. This paper put forward relevant policy-making proposals after the si- mulated data are obtained through computation