• DOI:10.1007/s11187-022-00657-y
• Corpus ID: 250996861

Natural disasters, entrepreneurship activity, and the moderating role of country governance

@article{Boudreaux2022NaturalDE,
  title={Natural disasters, entrepreneurship activity, and the moderating role of country governance},
  author={Christopher John Boudreaux and Anand Jha and Monica Escaleras},
  journal={Small Business Economics},
  year={2022}
}

• C. Boudreaux, Anand Jha, Monica Escaleras
• Published 22 July 2022
• Business
• Small Business Economics

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. natural Our findings provide new insights into how natural disasters affect and highlight the of country findings important for both the effect of natural disasters on entrepreneurship activity is nuanced and contingent upon country Our study also useful to policymakers who want to limit the adverse impact of natural disasters on start-up activity. Policymakers recognize these new firms are the backbone of new job creation, and they are more likely to invest in potential innovative breakthroughs, leading to more employment in the future.