International Trade and Cash Management: Does Financial Inclusion Matter in OIC Countries?

• Gürbüz, Hidayet Zahid ^[1]
  1. [1] Karabük University

     Karabük University

     Turquía

     
• Localización: Global Economic Interconnectedness: International Trade and Finance / coord. por Javier Martínez Falcó, Eduardo Sánchez García, Bartolomé Marco Lajara, Rosana Fuentes Fernández, 2024, ISBN 979-8-3693-5305-9, págs. 197-212
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • This chapter assesses the impact of international trade on cash management by considering the financial inclusion for 2,202 non-financial firms in Organization of Islamic Cooperation (OIC) countries over 2004-2021. Empirical results demon- strate that there is a positive (negative) relationship between trade volume and cash holdings when financial inclusion is higher (lower). This result is in line with the precautionary motive of cash. Non-financial firms operating in OIC countries can leverage these insights to inform their cash management strategies. Firms may consider adjusting their cash reserves based on fluctuations in trade volume and prevailing levels of financial inclusion. This proactive approach to cash management can help firms better navigate uncertainties in the international trade environment.