Are financial development and financial stability complements or substitutes in poverty reduction?

This paper studies the association between financial development, stability, and poverty for a sample of 109 developed developing countries from 1995 to 2018. Most existing in this literature have focused on only few recent looked at effects stability poverty. However, none has interaction effect two Our contribution is manifold. First foremost, we investigate whether development are substitutes or complements reducing find evidence favor former: Financial greater alleviation more fragile system vice-versa. Second, using different measures show that associated with lower levels And finally, while previous presumed homogeneous various poverty, both exert heterogeneous depending level considered.