Investigating the relationships between gender inequality, international trade and innovation: evidence from Türkiye

Abstract

This study examines the complex relationships between gender inequality, international trade, and innovation in Türkiye. Gender inequality, international trade, and innovation data, compiled for the Turkish economy between 1991 and 2022, were analyzed using the Nonlinear Autoregressive Distributed Lag (NARDL) model. According to the results of the study, a 1% increase in the Gender Development Index (GDI) leads to a 1.4% decrease in trade, while a 1% decrease causes a 1.2% decrease. This indicates that trade responds asymmetrically to changes in gender equality, reflecting differential adjustment effects. Furthermore, innovation, as measured by patent activity, is asymmetrically affected by gender inequality. A 1% increase in the Gender Inequality Index (GII) significantly increases the number of patents by 38%, while a decrease has no significant effect. These findings highlight the importance of addressing gender inequalities to promote inclusive innovation and equitable trade growth. The findings explain the existence of strong and asymmetric relationships between gender inequality, international trade, and innovation. Importantly, these results should not be interpreted as policy recommendations against improving gender equality, but rather as reflecting transitional economic dynamics. When the results are evaluated in terms of the UN Sustainable Development Goals (SDGs), trade contributes to progress in gender equality and supports the achievement of the goals of Gender Equality, Decent Work and Economic Growth, and Reduced Inequalities. At the same time, the findings indicate that an increase in GII leads to a significant increase in the number of patents is related to the SDGs’ of Gender Equality, Industry, Innovation and Infrastructure, and Reduced Inequalities.