A qualitative model of mining company taxpayer behaviour in the Lao PDR

Abstract

The Lao PDR is economically dependent on natural resources, particularly gold and copper. Consequently, mineral taxation is an important source of government revenue. The Lao PDR is one of three Asia-Pacific case studies used in the author's research to examine the relationship between company behaviour and mineral law and taxation changes. The research method involved qualitative interviews with mining executives, with the results analysed using Grounded Theory. The case study looks at the central phenomenon that, far from being an automatic process, company behaviour in response to mining law and taxation changes is complex and depends on internal variables and perceptions of external events. The author argues that understanding the variables influencing the main mining players behaviour in mineral dependent economies is important to understanding the impact of policy changes. The article proposes a model and four theories arising from the interviews and validates the theories from the literature. The article presents new insights into company behaviour that may inform mining, law regulations and policy development in mineral dependent economies.