Almanaseer, S. R. (2023) The Relationship Between Financial Integration and Financial Stability: an Application of ‎Panel Smooth Transition Model

Purpose: This research aims to determine the correlation between financial integration and stability whether increasing leads increased stability. Theoretical framework: The study investigates effect of growing integrity on causal association two variables. Design/methodology/approach: uses an Autoregressive-Distributed Lag (ARDL) regression model with help least squares (OLS) evaluate relationship work further employed a Panel Smooth Transition Model (PSTR) nonlinearity among factors investigated entrance stage boosting beyond which Total Factor Productivity (TFP) extension is possibly dampened. Findings: results came forward positive impact across many countries. Findings indicated that economic primary channel mediate monetary extremity in economies. Fiscal policy should seek measures reduce risk crisis transfer increase benefits achieve Research, Practical & Social implications: recommends considering for development avoiding occurrence by fiscal policy. Originality/value: highlight sectors where required. Moreover, establishment subsidiary international bank resident economy local centre’s loans has been emphasized.