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JOURNAL OF MANAGEMENT POLICY AND PRACTICE

Impacts of Tax Incentive Programs on Mineral Exploration

Expenditures in Canada: An Empirical Analysis

Author(s): Irina Khindanova

Citation: Irina Khindanova, (2012) "Impacts of Tax Incentive Programs on Mineral Exploration

Expenditures in Canada: An Empirical Analysis," Journal of Management Policy and Practice, Vol. 13, Iss. 5, pp. 81 - 87

Article Type: Research paper

Publisher: North American Business Press

Abstract:

From a government perspective, exploration investment is important for future global competitiveness in

mineral industries. Canada provides an example of a nation that promotes exploration and is a major

target of companies’ exploration budgets. This paper analyzes impacts of the government policies and tax

incentive programs on exploration spending by mining companies in Canada. The study is performed

using econometric modeling of the Canadian exploration expenditures over the period of 1969-2008. Our

analysis confirms that the tax incentive programs were effective in increase of exploration spending by

the junior mining companies.