The influence of economic factors on world copper production

Abstract

Copper is a very important mineral that has a wide application in industry, especially in the electrical industry and energy industry. With the increase in electromobility, its potential will grow in the future. Any shortage of copper on the world market could thus endanger modern industry. Therefore, the authors decided to deal with the influence of economic factors (price, population, GDP and cumulative inflation) on copper production and with creation of suitable econometric models that best expressing the relationship between production and economic factors for the period 2010-2019 in their article. The influence of economic factors on world copper production is examined using the Pearson correlation coefficient. It was found that copper production is inversely proportional to the price of copper, it is a strong dependence. In contrast, the correlation between copper production and other factors is very strong and positive. Using econometric modeling, it was discovered that exponential regression is the best expression for the relationship between copper production and its price and logarithmic regression most appropriate for the relationship between copper production and all other economic factors.