Financial Preparation, Disaster Experience, and Disaster Risk Perception of Rural Households in Earthquake-Stricken Areas: Evidence From the Wenchuan and Lushan Earthquakes in China’s Sichuan Province

Dingde Xu, Zhuolin Yong, Xin Deng, Yi Liu, Kai Huang, Wenfeng Zhou and Zhixing Ma
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Dingde Xu: Sichuan Center for Rural Development Research, College of Management of Sichuan Agricultural University, Chengdu 611130, China
Zhuolin Yong: College of Management of Sichuan Agricultural University, Chengdu 611130, China
Xin Deng: College of Economics of Sichuan Agricultural University, Chengdu 611130, China
Yi Liu: College of Management of Sichuan Agricultural University, Chengdu 611130, China
Kai Huang: College of Management of Sichuan Agricultural University, Chengdu 611130, China
Wenfeng Zhou: College of Management of Sichuan Agricultural University, Chengdu 611130, China
Zhixing Ma: College of Management of Sichuan Agricultural University, Chengdu 611130, China

IJERPH, 2019, vol. 16, issue 18, 1-17

Abstract: Sichuan is a province in Southwest China that is famous worldwide for its earthquakes. However, few quantitative studies in China have probed the correlations between rural households’ financial preparation, disaster experience, and disaster-risk perception. Using survey data of 327 rural households from four areas stricken by the Wenchuan Earthquake and Lushan Earthquake in Sichuan, the ordinary least square (OLS) method was used to quantitatively explore the correlations between these three factors. The results show that rural households’ total family cash income, asset diversity, and whether rural households can borrow money from relatives and friends whenever there is a catastrophe such as an earthquake are significantly negatively correlated with the probability of disaster occurrence. Asset diversity and whether rural households can borrow money from banks whenever there is a catastrophe such as an earthquake are significantly positively related to the severity of disaster occurrence. The severity of residents’ disaster experience is not significantly correlated with the probability of disaster occurrence, but is significantly positively related to the severity of the disaster. The research results can provide useful enlightenment for the improvement of financial preparedness and disaster risk management for rural households in earthquake-stricken areas.

Keywords: financial preparation; disaster experience; disaster risk perception; earthquake; Sihuan province; rural China (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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