Researching spatial patterns of single proprietorship and business payday loan providers in Seoul

Hyoung Jun Kim, Bo Kyeong Lee, So Younger Sohn

Abstract

The economic regulation lowering the interest limit changed the organization model of pay day loan treatments, and thus, we anticipate that the venue of payday lenders may transform besides. Particularly, because financial company ailments for sole proprietorship and corporate payday lenders differ, their particular target customers are furthermore anticipated to change. The goal of this study should diagnose and evaluate the spatial activities of business and single proprietorship payday loan providers following implementation of the monetary rules. In a situation learn of Seoul, Korea, we incorporate a poor binomial regression for all the few business and sole proprietorship payday loan providers after regulating for demographic problems. Eigenvector spatial selection is required take into consideration the spatial autocorrelation among administrative parts in Seoul. The outcomes from regression analyses reveal that only main proprietorship payday loan providers is responsive to more affordable houses and bigger traditional industries. All of our findings claim that regulations that decrease the optimum cash advance interest rate causes monetary asymmetry for the reason that economically distressed citizens are additional exposed to poor payday loan providers.

Bibliographical notice

All Technology Log Classification (ASJC) requirements

• Ecological Science(all)
• Personal Sciences(all)

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• main proprietorship personal Sciences 100%

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In: Annals of Regional technology , Vol. 64, #1, 01.02.2020, p. 215-236.

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T1 – contrasting spatial activities of only proprietorship and business payday loan providers in Seoul, Korea

AU – Kim, Hyoung Jun

AU – Lee, Bo Kyeong

AU – Sohn, Therefore Young

N1 – author Copyright: 2020, Springer-Verlag GmbH Germany, element of Springer character.

N2 – The financial regulation decreasing the rate of interest limit has evolved the organization model of pay day loan treatments, and therefore, we anticipate that the venue of payday lenders may alter and. Particularly, because economic business circumstances for main proprietorship and corporate payday lenders vary, their target customers are also anticipated to vary. The purpose of this research is always to diagnose and examine the spatial designs of business and main proprietorship payday loan providers following utilization of the economic legislation. In a case learn of Seoul, Korea, we incorporate an adverse binomial regression when it comes to wide range of corporate and single proprietorship payday lenders after regulating for demographic problems. Eigenvector spatial selection is utilized to take into account the spatial autocorrelation among administrative parts in Seoul. The outcomes from regression analyses expose that merely sole proprietorship payday lenders become responsive to cheaper housing and big standard markets. Our very own conclusions suggest that guidelines that reduce the optimal cash advance interest rate can result in financial asymmetry because financially troubled citizens is likely to be more confronted with bad payday lenders.

AB – The monetary regulation lowering the interest rate cap has changed the organization style of cash advance treatments, and thus, we count on the location of payday lenders may change as well. Specifically, because monetary company circumstances for main proprietorship and business payday lenders differ, their unique target customers are also anticipated to differ. The goal of this study should determine and compare the spatial habits of business and sole proprietorship payday loan providers following the implementation of the monetary legislation. In a case learn of Seoul, Korea, we make use of a negative binomial regression for all the number of dig this business and main proprietorship payday loan providers after managing for demographic ailments. Eigenvector spatial filtering is required to take into consideration the spatial autocorrelation among management regions in Seoul. The outcomes through the regression analyses expose that best single proprietorship payday lenders tend to be sensitive to inexpensive construction and large conventional industries. Our results suggest that guidelines that reduce the optimum payday loan rate of interest causes monetary asymmetry in that economically troubled residents is likely to be most exposed to unhealthy payday loan providers.