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1. Introduction
1.1 Background
With the globalization of the economy and the all-in one of the world, the Olympic Games are developing into large-scale, international, comprehensive, expensive, numerous, cultural, long-term and high-level mega-event, and its impacts on economy of host city is becoming more and more outstanding (Cashman, Richard & Hughes, Anthony, 1999). However, the study on the economic of the Olympic Games starts very late, and much of the existing study is case demonstration study which lacked of the nature of theories and system, thus it is hard to estimate and evaluate the economic impacts of the Olympic Games totally.

To the economic benefits of the Olympic Games, the main research focuses on these economic benefits from the relative sides. According to the classification of scope, the study and analysis the success of United States, Japan and South Korea bid to host the Olympic Games, it pointed out that the hosting of the Olympic Games can produce both internal and external benefits (A report on the financial contribution by the New South Wales Government to the Sydney Olympic Game 2002).

The economic benefits of the Olympic Games, and the other study focused on the final increase revenue results of the host city looked for. Olympic Games as the world’ s largest integrated Games, the host and the parties are concerned to bring huge economic benefits to the local economy by a large injection of new capital, the cost of additional tourists in the Olympic Games and expenditures during the period also increases the income of host city. The new capital will increase in the local economy and the cost can be re-produced on the host city for a series of economic impact, which would increase the host city's international reputation to bring about long-term interests.

The Games can bring long-term prosperity to the members of the public after. The hosting of the Olympic Games needs a lot of infrastructure development and the running of the Olympic Games themselves also need to spend a lot of funds, thus investment of a large amount of money is necessary. Direct investment to GDP is stimulating role.

1.2 Significance
1.3 Outline of the paper
2 Literature review
2.1 the concept of Olympic economy
2.2 the basic characteristics of Olympic economy
2.3 relative theory of Olympic economy
3 the analysis on mechanism and effect of Olympic economy
3.1 the mechanism that the Olympic drive economy to develop
3.2 the multiplier effect of Olympic economy
3.4 the diffusing effect of Olympic economy
4. Case study- Beijing Olympic economy
4.1. Introduction of Beijing Olympics
4.2. The input and output of the Beijing Olympics
4.3. The benefit of the Beijing Olympics
4.4. The influence of the Beijing Olympics
4.5. The countermeasures against the adverse effects
5. Summary

Reference
1. Cashman, Richard & Hughes, Anthony. (Ed.)(1999) Staging the Olympics: The Event and its impacts. Sydney，NUSW Press.
2. A report on the financial contribution by the New South Wales Government to the Sydney Olympic Game 2002
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