Exploring Plan to Invigorate Small Loan Finance through Decreasing Warranty Accidents: Analyzing the Panel Data

Abstract

This study explores which factors influence guarantee accident in the Regional Credit Guarantee Foundation and ways to vitalize common people economy through shaving off bankruptcy of common people. Methodology to analyze is panel regression analysis with data of Korean Federation of Credit Guarantee Foundations, Statistics Korea and the Bank of Korea. Received (September 21, 2015), Review Result(October 07, 2015) Accepted(October 21, 2015), Published(December 31, 2015) (First Author) 200-701 Dept, of Economy Kangwon National University. 1 Gangwondaehak-gil, Chuncheon-si, Gangwon-do, Korea email: csh3214@naver.com (Co-Author) 302-847 Dept. Risk Management, KOREG., 713 Hanbatdaero, Seo-gu, Daejeon, Seoul, Korea email: jazz@kangwon.ac.kr 302-847 Dept, of Statistic Kangwon National University. 1 Gangwondaehak-gil, Chuncheon-si, Gangwon-do, Korea email: hjkim500@kangwon.ac.kr (Corresponding Author)302-828 Research & Development Team, KISED., 797 Hanbatdaero, Seo-gu, Daejeon, Seoul, Korea email: coopshy@kangwon.ac.kr Exploring Plan to Invigorate Small Loan Finance through Decreasing Warranty Accidents : Analyzing the Panel Data Copyright c 2015 HSST 456 This study analyzes basic statistics, correlations and Hausman test to select the optimal model among PLS model, fixed effects model and random effects model ,and fixed effects model is optimal in the result. The results show that gross domestic savings rate and regional amount of imports and exports showed a negative relationship with the guarantee accident rates, and house price inflation has showed a positive relationship with the guarantee accident rates. In other words, the government promotes the real estate market is stabilized and should enable increased savings and local import and export.