The Impact of Stock Market-Based Financial Development on Economic Growth: Evidence from Turkey

This study investigates the impact of stock market-based financial development on economic growth in the case of Türkiye. Financial development is considered a fundamental component of economic progress, playing a crucial role in understanding the relationship between financial markets and economic expansion. The study utilizes quarterly data from January 1999 to January 2023 and applies the Autoregressive Distributed Lag (ARDL) cointegration methodology. The findings suggest that financial development, alongside consumption and net exports, has a positive influence on economic growth. However, investment has no significant effect on the growth rate, whereas government expenditure has a negative impact.