The evaluation of robustness of financial development’s Impact on poverty and inequality

In this paper has been paid to evaluation of robustness of financial development’s impact on poverty and inequality with a comparative approach between high- income and Upper middle income countries and low- income and Lower middle income countries. For this purpose a total of 59 countries have been studied during the period of 2000 to 2016 . In order to check the robustness of the result, in one hand, we have reduced during the period 2002 to 2012 and the number of countries to 49 countries and On the other hand, three indices such liquid liability, private sector credit and assets of central Bank as an indicator of financial development is taken into account. The result, in terms of poverty models, indicate that the sign and obtained values of result are sensitive than the kind of selection indices of financial development and robustness of the result than the kind of selection sample. In conjunction with the models estimated on inequality, in terms of sign and meaningful, only the liquid liability is robustness to the selection sample, that is, it shows the positive effect of financial development on reducing inequality and other indicators of financial development not valid. According to results it can be stated that despite the impact of financial development on poverty and inequality, especially among various income groups, amount and the effectiveness is ambiguous and it depends on  the selection indicators of financial development.