The effect of political risk on unemployment rate and entrepreneurship in selected countries

In today's era, high economic growth is one of the most important goals in the economy of countries, which is known as a tool to achieve sustainable development. In this regard, political instability is a major obstacle for the economic development and growth of societies. In the economy of nations, one of the basic issues is the unemployment rate, so that increasing employment and reducing unemployment is one of the indicators of the development of nations. In this regard, entrepreneurial activities and the formation of businesses are necessary for the growth of employment and the reduction of the unemployment rate. The present study was conducted with the main purpose of investigating the impact of political risk on unemployment and entrepreneurship. The study of the impact of political risk on unemployment and entrepreneurship rates in 30 developed and underdeveloped countries during the period from 2010 to 2022 was done using the panel data method, and the software used in this research is Eviews. significant positive effect on the unemployment rate and entrepreneurship has a significant negative effect on both study groups. This means that with the increase in political risk, the unemployment rate in the studied countries increased, although its impact was greater in developing countries than in developed countries. Also, the increase in political risk leads to a decrease in the rate of entrepreneurship in developed and developing countries.