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Mineral Taxation, Mineral Revenues and Mine Investment in Zambia, 1964–83
Author(s) -
O'Faircheallaigh Ciaran
Publication year - 1986
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1986.tb01900.x
Subject(s) - revenue , investment (military) , tax revenue , natural resource economics , mining industry , modernization theory , production (economics) , mineral , mineral resource classification , government revenue , compromise , government (linguistics) , business , economics , mining engineering , finance , economic growth , geochemistry , engineering , macroeconomics , chemistry , geology , social science , philosophy , law , linguistics , sociology , political science , organic chemistry , politics
A bstract . The relationship between mineral taxation, mineral revenues , and investment in existing and new mine capacity in Zambia during 1964–83 is examined. By the mid‐1970s the Zambian copper industry was incapable of producing investible surpluses which could be appropriated by government partly because of unfavorable movements in real market prices for mining inputs and mineral output, partly because the mineral taxation systems applied since 1964 had deterred mine investment. This situation can only be remedied by changing the cost structure of Zambia's copper production, requiring major investments in modernization of existing, and development of new, mines. A tax system is suggested which offers a workable compromise between the need to obtain revenues for development and to ensure continued investment in mining.