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

The purpose of this paper is to investigate if a country’s quality governance moderates the effect natural disasters on start-up activity within that country. We test our hypotheses using panel 95 countries from 2006 2016. Our findings suggest discourage in with low-quality but encourage high-quality governance. Moreover, estimates reveal disasters’ effects persist for short term (1–3 years) not long term. provide new insights into how affect entrepreneurship and highlight importance country during these events. Natural more activity, only In governance, activity. These have important implications both researchers policymakers. Researchers should note nuanced depends study also useful policymakers who want limit adverse impact Policymakers recognize firms are backbone job creation, they likely invest potential innovative breakthroughs, leading employment future.