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Natural disasters and entrepreneurship in rural China

Author

Listed:
  • Rui Zhang
  • Chuncao Wang
  • Shaoyong Wu
  • Dawei Feng
  • Chenglei Zhang

Abstract

Entrepreneurial activities can provide jobs and increase market dynamics, which are important for economic and social development. Based on data from the 2014 China Family Panel Studies, this study examined the impact of natural disasters on entrepreneurship using a multivariable linear regression model. The findings indicated that natural disasters significantly negatively impact entrepreneurship. Specifically, natural disaster experience reduces the probability of entrepreneurship by 1.6%, and each unit increase in natural disaster intensity reduces the probability further by 0.7%. The study findings remain robust after using propensity score matching to mitigate potential sample selection problems. Further heterogeneity analysis suggests that natural disasters have a greater negative impact on individuals with low levels of education and household engaged in agricultural production. The mechanism analysis showed that natural disasters affect entrepreneurship by affecting the health status of individuals and the household’s wealth. Implications for the government are provided at the end of this study to increase the entrepreneurial intentions of affected households.

Suggested Citation

  • Rui Zhang & Chuncao Wang & Shaoyong Wu & Dawei Feng & Chenglei Zhang, 2026. "Natural disasters and entrepreneurship in rural China," Applied Economics, Taylor & Francis Journals, vol. 58(2), pages 243-261, January.
    • Handle: RePEc:taf:applec:v:58:y:2026:i:2:p:243-261
    DOI: 10.1080/00036846.2025.2452532
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