ANALYSIS OF REGIONAL AND INTER-REGIONAL ECONOMIC IMPACTS OF THE SPORTING MEGA EVENTS BASED IN RIO DE JANEIRO

Abstract

This paper analyzes the impacts of the investments due to the mega sports events for the economy of the state of Rio de Janeiro and possible spillovers effects in the rest of Brazil. For this, it was used the inter-regional Input-Output Table of state of Rio de Janeiro x remainder of Brazil to the year 2009, updated through the RAS method. The main results revealed that the intra-regional share of the output multiplier always exceeds the interregional share, what demonstrates that the economy of Rio de Janeiro does not generate significant spillover effect to the economy of the rest of Brazil and vice versa. Moreover, the GDP of Rio de Janeiro grew 13% as result of investments of mega events while the rest of Brazil’s GDP had only increased 0.45%. Finally, the economic growth will not be sustained to the economy of the state of Rio de Janeiro, since the sectors favored by investments of the mega events are not presented as the key sectors to Rio de Janeiro’s economy.