EMPIRICAL ANALYSIS OF ZINC CONSUMPTION DETERMINANTS ACROSS COUNTRIES: AN OLS TIME SERIES APPROACH

Abstract

This study presents an empirical investigation of zinc consumption dynamics and its macroeconomic determinants using a time series Ordinary Least Squares (OLS) regression framework. Zinc (Zn) plays a crucial role in multiple sectors of the economy, including galvanization, chemical production, medical applications, and technical manufacturing industries. Understanding the determinants of zinc consumption per capita is essential for evaluating industrial development patterns and resource allocation efficiency. The study employs annual time series data and applies OLS estimation techniques, complemented by descriptive statistical analysis, to examine the relationships between zinc consumption per capita (current US$) and a set of macroeconomic and industrial variables. These explanatory variables include GDP per capita (current US$), zinc price (current US$), and sectoral value-added shares such as galvanization (% of GDP), technical (% of GDP), chemical (% of GDP), and medical (% of GDP). The empirical results indicate that economic growth, measured by GDP per capita, has a significant positive relationship with zinc consumption, reflecting increased industrial demand in higher-income economies. Similarly, sectoral variables such as galvanization and chemical production show strong explanatory power, highlighting the importance of industrial structure in determining zinc demand. On the other hand, price effects demonstrate a negative relationship, consistent with standard demand theory.