Analysis of influencing factor on supply of micro-lending guaranteed based on dummy variables

Using the method of multi-factor regression analysis that introduces dummy variables, an empirical study on the factors influencing the supply of micro-lending guaranteed is carried out, taking the Shaanxi province as a case. The result shows that the factors affecting the supply of micro-lending guaranteed in Shaanxi province from 2004 to 2010 can be integrated into four aspects: guarantee fund, amount of loan applied, amount of obtained loan guaranteed and credit object. As a result, the government should strengthen the preparation and allocation of foundation of loan guarantee, meanwhile, the incentive mechanism should be improved with efforts in order to increase the enthusiasm of financial institutions to participate.