Macroeconomic factors and natural resource management in Africa: evidence from copper value addition in Zambia
Abstract This study examines the impact of macroeconomic factors on copper value addition in Zambia (1980–2021). The period was chosen due to significant fluctuations in the global copper market, including major shifts in production, pricing, and trade policies, making it a critical time frame for a...
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| Format: | Article |
| Language: | English |
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Springer
2025-01-01
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| Series: | Discover Sustainability |
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| Online Access: | https://doi.org/10.1007/s43621-024-00531-9 |
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| author | Bondo Chisanga Joseph Phiri Evans Osabuohien Leroy Johnson |
| author_facet | Bondo Chisanga Joseph Phiri Evans Osabuohien Leroy Johnson |
| author_sort | Bondo Chisanga |
| collection | DOAJ |
| description | Abstract This study examines the impact of macroeconomic factors on copper value addition in Zambia (1980–2021). The period was chosen due to significant fluctuations in the global copper market, including major shifts in production, pricing, and trade policies, making it a critical time frame for analysing long-term trends in the industry. Additionally, this period offers comprehensive data availability for key variables such as gross domestic products (GDP), exchange rates, trade value margins, inflation rates, and mineral rents, enabling a robust analysis of their impact on copper value addition. Using the ARDL (Autoregressive Distributed Lag) approach, the analysis investigates the long-term and short-term relationships between copper value addition and key economic variables (notably GDP, inflation, exchange rates, and copper exports). The findings reveal that copper exports (p-value: 0.0600) and GDP (p-value: 0.0290) significantly enhance value addition. Conversely, higher copper prices negatively impact value addition (p-value: 0.0095). These results suggest that effective economic policies targeting stable macroeconomic conditions are essential for enhancing value addition in Zambia's copper sector. Thus, the findings from the study provides critical insights for policymakers to promote sustainable economic growth through improved copper value addition. |
| format | Article |
| id | doaj-art-da7f8907f775471b855382b824055c30 |
| institution | Kabale University |
| issn | 2662-9984 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Springer |
| record_format | Article |
| series | Discover Sustainability |
| spelling | doaj-art-da7f8907f775471b855382b824055c302025-02-02T12:05:48ZengSpringerDiscover Sustainability2662-99842025-01-016111610.1007/s43621-024-00531-9Macroeconomic factors and natural resource management in Africa: evidence from copper value addition in ZambiaBondo Chisanga0Joseph Phiri1Evans Osabuohien2Leroy Johnson3School of Postgraduate Studies, University of LusakaSchool of Postgraduate Studies, University of LusakaCentre for Economic Policy and Development Studies, Covenant UniversityHead Financial Stability Research, Central Bank of Sierra LeoneAbstract This study examines the impact of macroeconomic factors on copper value addition in Zambia (1980–2021). The period was chosen due to significant fluctuations in the global copper market, including major shifts in production, pricing, and trade policies, making it a critical time frame for analysing long-term trends in the industry. Additionally, this period offers comprehensive data availability for key variables such as gross domestic products (GDP), exchange rates, trade value margins, inflation rates, and mineral rents, enabling a robust analysis of their impact on copper value addition. Using the ARDL (Autoregressive Distributed Lag) approach, the analysis investigates the long-term and short-term relationships between copper value addition and key economic variables (notably GDP, inflation, exchange rates, and copper exports). The findings reveal that copper exports (p-value: 0.0600) and GDP (p-value: 0.0290) significantly enhance value addition. Conversely, higher copper prices negatively impact value addition (p-value: 0.0095). These results suggest that effective economic policies targeting stable macroeconomic conditions are essential for enhancing value addition in Zambia's copper sector. Thus, the findings from the study provides critical insights for policymakers to promote sustainable economic growth through improved copper value addition.https://doi.org/10.1007/s43621-024-00531-9Copper value additionCopper exportsCopper PriceMacroeconomic factorsInflation rateMineral rents |
| spellingShingle | Bondo Chisanga Joseph Phiri Evans Osabuohien Leroy Johnson Macroeconomic factors and natural resource management in Africa: evidence from copper value addition in Zambia Discover Sustainability Copper value addition Copper exports Copper Price Macroeconomic factors Inflation rate Mineral rents |
| title | Macroeconomic factors and natural resource management in Africa: evidence from copper value addition in Zambia |
| title_full | Macroeconomic factors and natural resource management in Africa: evidence from copper value addition in Zambia |
| title_fullStr | Macroeconomic factors and natural resource management in Africa: evidence from copper value addition in Zambia |
| title_full_unstemmed | Macroeconomic factors and natural resource management in Africa: evidence from copper value addition in Zambia |
| title_short | Macroeconomic factors and natural resource management in Africa: evidence from copper value addition in Zambia |
| title_sort | macroeconomic factors and natural resource management in africa evidence from copper value addition in zambia |
| topic | Copper value addition Copper exports Copper Price Macroeconomic factors Inflation rate Mineral rents |
| url | https://doi.org/10.1007/s43621-024-00531-9 |
| work_keys_str_mv | AT bondochisanga macroeconomicfactorsandnaturalresourcemanagementinafricaevidencefromcoppervalueadditioninzambia AT josephphiri macroeconomicfactorsandnaturalresourcemanagementinafricaevidencefromcoppervalueadditioninzambia AT evansosabuohien macroeconomicfactorsandnaturalresourcemanagementinafricaevidencefromcoppervalueadditioninzambia AT leroyjohnson macroeconomicfactorsandnaturalresourcemanagementinafricaevidencefromcoppervalueadditioninzambia |