THE KUZNETS CURVE FOR MOTORCYCLES IN BRAZIL

Abstract

This article evaluates the evolution of motorcycle adoption in Brazil. More specifically, we aim to empirically understand the relationship between the number of two-wheeled vehicles and the country's level of development, as well as some of the factors that reinforce vehicle adoption in determined areas. The work uses data for 5565 Brazilian municipalities from 2010 to 2016 and implements a fixed-effects panel model. The results indicate an inverse relationship between income and number of motorcycles, corroborating the hypothesis of a Kuznets curve for motorcycles and income level in Brazil. In addition to the validation of the increase in the number of motorcycles observed in the country in recent years, we also find evidence that the increase in the number of motorcycles in municipalities may be related to the drop in formal employment, and big municipalities have the lowest per capita motorcycle ratio.