Examining the effects of urbanization and purchasing power on the relationship between motorcycle ownership and economic development: A panel data

May Yen Chu, Teik Hua Law, Hussain Hamid, Siong Hook Law, Jin Chai Lee

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)
1 Downloads (Pure)

Abstract

The aim of the present study was to examine the effect of urbanization, purchasing power, and income on motorcycle ownership and the effects of interactions between these factors. Specifically, we examined how the inverse-U relationship between motorcycle ownership and economic development changed in response to different levels of purchasing power and urbanization. We apply a fixed effects negative binomial panel regression analysis on a panel data of 73 countries between 1963 and 2013. Results revealed evidence of an inverse-U relationship between purchasing power and motorcycle ownership. Motorcycle ownership increases during the beginning stages of consumer price index (CPI), due to higher purchasing power. Once a threshold level was exceeded, higher CPI (lesser purchasing power) created an inverted effect, which led to a decline in motorcycle ownership. Importantly, the turning point increased in accordance with an increase in urbanization. The estimation results also suggested that the inverse-U relationship between motorcycle ownership and per capita GDP varied in accordance with both purchasing power and urbanization.

Original languageEnglish
Pages (from-to)72-82
Number of pages11
JournalInternational Journal of Transportation Science and Technology
Volume11
Issue number1
Early online date7 Dec 2020
DOIs
Publication statusPublished - Mar 2022

Keywords

  • Economic development
  • Kutznet curve
  • Motorcycle ownership
  • Purchasing power
  • Urbanization

ASJC Scopus subject areas

  • Management, Monitoring, Policy and Law
  • Transportation
  • Automotive Engineering
  • Civil and Structural Engineering

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