Natural Disasters and Entrepreneurship Activity: the Moderating Role of Country Governance

Christopher Boudreaux, Anand Jha and Monica Escaleras

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this paper is to investigate if a country’s quality of governance moderates the effect of natural disasters on start-up activity within that country. We test our hypotheses using a panel of 95 countries from 2006 to 2016. Our findings suggest that natural disasters discourage start-up activity in countries that have low-quality governance but encourage start-up activity in countries that have high-quality governance. Moreover, our estimates reveal that natural disasters’ effects on start-up activity persist for the short term (1–3 years) but not the long term. Our findings provide new insights into how natural disasters affect entrepreneurship activity and highlight the importance of country governance during these events.

Keywords: country governance; entrepreneurship; institutions; natural disasters; start-ups (search for similar items in EconPapers)
JEL-codes: L26 M13 O11 O43 Q54 (search for similar items in EconPapers)
Date: 2022-10-22
New Economics Papers: this item is included in nep-ent and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:115134

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