Title

OECD's FDI Regulatory Restrictiveness Index: Revision And Extension To More Economies

Document Type

Paper

Publication Date

12-1-2006

Published In

OECD's FDI Regulatory Restrictiveness Index: Revision And Extension To More Economies

Abstract

This paper provides a revised measure of regulatory restrictions on inward foreign direct investment (FDI) for OECD countries and extends the approach to 13 non-member countries. The methodology is largely similar to that adopted in the previous version of the OECD indicator and covers three broad categories of restrictions: limitations on foreign ownership, screening or notification procedures, and management and operational restrictions. The FDI restrictiveness indicator captures statutory deviations from "national treatment", i.e. discrimination against foreign investment. When combined with other factors having an influence on foreign investment decisions, it has proven to be a good predictor of countries' inward FDI performance.

Keywords

FDI restrictions, foreign direct investment, foreign ownership