ABSTRACT
This chapter aims to test the hypothesis and to determine whether there is a statistically significant relationship between conditions in the world mining industry and the performance of the Peruvian industry. It examines what degree changes in Peruvian production correlate with changes in mining production on a world scale. The chapter analyzes the relationship between changes in world market metals prices and variations in the level of production in Peru. It considers the relationship between Peruvian metal production and the world market, and specifically to test the hypothesis that changes in Peruvian production can be explained in large part by external factors. A slowdown in the international economy frequently is accompanied by a decline in the demand for copper, lead, zinc, and iron. The determinants of mining production vary considerably from country to country, and can be understood only by analyzing the particular economic, social, and political conditions in the mining sector in each unique country context.
