Macroeconomic factors and natural resource management in Africa: evidence from copper value addition in Zambia.

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. [ABSTRACT FROM AUTHOR]