ABSTRACT
Two alternative approaches could be adopted in dealing with this problem. The first would involve a calculation of the extent to which various impacts have aided or obstructed host country governments in pursuit of their policy aims. Second, a crucial issue in examining host country-foreign investor relations involves the possibility that foreign investors might influence host country authorities into adopting policies which are in fact not likely to maximise host country returns from mineral development. The second methodological problem arises from the need to establish a causal relationship between the occurrence of foreign mining investment and empirically-observed phenomena in the host country. Perhaps the most apparent impact of foreign investment is that the economic activities it allows create financial surpluses. Foreign mining investment may also add to national incomes by creating additional economic activity through linkage development. A number of external diseconomies may be associated with foreign mining investment.
