oecd fdi regulatory restrictiveness index · top down –perceptions bottom up –hard data...
TRANSCRIPT
OECD FDI Regulatory
Restrictiveness Index
Stephen Thomsen, Investment Division, OECD
OECD Conference Centre
Paris, France
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What gets measured gets done
Indicators are proliferating:
World Bank, United Nations, OECD
Transparency International, IMD, WEF
Approaches vary:
Top down – perceptions
Bottom up – hard data
Governments are paying attention:
Help to prioritise reforms
Create momentum for reform
Evaluate progress
3
OECD Indicators in various
policy areas
Product market regulation
State control, barriers to entrepreneurship,
barriers to trade and FDI
Labour market policies
Employment protection legislation
Educational attainment and achievement (PISA)
4
OECD’s Going for Growth:
Indicator-based monitoring
5
FDI Index: What does it measure?
Statutory restrictions
All discriminatory measures affecting foreign
investors, including market access restrictions
and departures from national treatment
What is not covered?
Degree of implementation
Institutional quality
6
FDI Index: Methodology
Four types of restrictions
Sectoral equity limits
Screening
Restrictions on key personnel: managers, board
Other restrictions: land, reciprocity, capital
repatriation, branches
Weighting
Each restriction given a score based on an
assessment of its importance.
Each sector is then assigned a weight to derive an
aggregate figure
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Current revisions to FDI Index
Greater focus on FDI (mode 3)
No public ownership
More transparent sectoral weighting
Simplification of equity restrictions
More sectors
Updated & expanded to new countries
8
FDI Index: data & coverage
30 OECD countries: information based on reservations under
the OECD Code of Liberalisation of Capital Movements and the
National Treatment Instrument
12 countries adhering to the OECD Declaration on International
Investment (NTI).
• Argentina, Brazil, Chile, Peru
• Egypt, Israel, Morocco
• Estonia, Latvia, Lithuania, Romania, Slovenia
Other non-OECD countries (China, India, Indonesia, Russia,
Saudi Arabia, South Africa ), based on national sources, GATS
and other international agreements, APEC
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Sectors
Agriculture, forestry, fishing
Mining & quarrying
Manufacturing (8 sub-sectors)
Electricity (generation, distribution)
Construction
Distribution (wholesale , retail)
Transport (surface, water, air)
Hotels & restaurants
Information & communication (fixed & mobile telecoms,
broadcasting, other)
Financial services (banking, insurance, other)
Real estate
Professional services (accounting, legal, architecture,
engineering)
Other services (incl. health, education)
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FDI regulatory restrictiveness, 2006
(currently being updated & revised)
0.000
0.050
0.100
0.150
0.200
0.250
0.300
0.350
0.400
0.450
0.500
Latv
ia
Germ
any
Neth
erlands
Slo
vak R
epublic
United K
ingdom
Austr
ia
Irela
nd
Italy
Sw
eden
Hungary
Fra
nce
Czech R
epublic
Gre
ece
Lithuania
Pola
nd
Belg
ium
Turk
ey
Denm
ark
Spain
Arg
entina
Port
ugal
United S
tate
s
Kore
a
Peru
Esto
nia
Isra
el
Sw
itzerlan
d
Slo
venia
Japan
Norw
ay
Rom
ania
New
Zeala
nd
Chile
Fin
land
Austr
alia
Egyp
t
South
Afr
ica
Ind
on
esia
Bra
zil
Mexic
o
Russia
Canada
Chin
a
Icela
nd
India
Other restrictions
Screening
Equity
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Regulatory restrictiveness by industry,
OECD and non-OECD average
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
OECD Average Non-OECD Average
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How can the FDI Index by used?
To measure:
relative FDI restrictiveness of each country
changes in restrictiveness over time
a country’s performance in attracting FDI
for a given level of restrictiveness
the effect of FDI liberalisation on FDI
inflows
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Thank You
www.oecd.org/investment