This study investigates the long and short-term impacts of financial development and women employment on economic growth in Türkiye from 1988 to 2021 using the Autoregressive Distributed Lag bounds testing approach. The analysis incorporates annual time-series data for real Gross Domestic Product, the International Monetary Fund Financial Development Index, and women employment. Unit root tests with structural breaks confirm mixed orders of integration, validating the Autoregressive Distributed Lag framework. The bounds test reveals a stable long-run co-integrating relationship among the variables. The study reveals that financial development positively affects long-term economic growth in Türkiye and emphasizes the importance of well-functioning financial systems. However, women employment has a short-term dampening effect on growth, as women employment is more concentrated in low-productivity sectors. The study points to the need for financial system mechanism and financial sector reforms that include targeted policies for inclusive growth and new policy and products to promote gender equality. The findings underscore the critical role of financial systems in sustaining growth but highlight unresolved structural barriers limiting women economic contributions. Policy implications emphasize integrated strategies: enhancing financial inclusion, designing gender-responsive labor policies (e.g., vocational training, childcare support), and fostering sectoral diversification to leverage women workforce potential. This study bridges gaps in Türkiye specific literature by addressing the interplay between financial development and gender dynamics, advocating for cohesive reforms to achieve inclusive, sustainable economic progress.
Daltaban et al. (Sun,) studied this question.