Investment Decisions of International Mining Firms: Policy Approaches

Abstract

The tools and techniques of system dynamics method are applied to the complex problem of understanding those factors that affect the flow of international mineral investment funds. The main deliverable is a simulation model developed in Powersim in the system dynamics tradition. The model, comprising more than 180 variables, provides a means of examining the effectiveness of varied environmental, fiscal, and corporate policies on the flow of investment funds and mineral resources among a number of simulated mining firms and competing countries.