Until recently, economists focused on creating and accelerating economic growth, especially in poor countries, rather than on the issue of income distribution and the elimination of abnormal income inequalities. Even severe income inequality was considered a prerequisite for economic growth and efficiency. Because it was argued that the rich save a significant percentage of their income relative to the poor, and it is this accumulation of savings that in turn can enable investment and economic growth. This way of thinking led to a lack of attention to the issue of income distribution for a long time. Given the importance of this issue in this study, we examined the impact of financial development on income distribution in Iraq using ARDL method between 2005-2020. Results shows that Financial development in the short and long term has a significant positive effect on the Gini coefficient, that is, this relationship is in the form of an inverted U, which confirms the theory of Greenwood and Joanweiss in Iraq.
