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OECD's FDI Regulatory Restrictiveness Index: Revision and Extension to more Economies

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  • Takeshi Koyama
  • Stephen S. Golub

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. L'indice OCDE des restrictions réglementaires sur les investissements en provenance de l'étranger : Révisions et extension à plus de pays Ce document présente une mesure révisée des restrictions réglementaires envers les influx des investissements directs étrangers (IDE) pour les pays de l’OCDE et étend la mesure à 13 pays non-membres. L’approche est dans son ensemble similaire à celle adoptée lors de la version antérieure de l’indicateur de l’OCDE, et couvre essentiellement trois catégories de restrictions : les limites sur la part de firmes domestiques pouvant être détenues par le capital étranger, les procédures d’examen sélectif et de notification, et les restrictions concernant la gestion et les opérations des entreprises. L’indicateur de restrictions réglementaires mesure les déviations par rapport au "traitement national" c’est-à-dire les discriminations à l’encontre des investissements étrangers. Combiné à d’autres facteurs ayant une influence sur les décisions d’investissement à l’étranger, cet indicateur contribue à expliquer la performance des pays en matière d’influx des IDE.

Suggested Citation

  • Takeshi Koyama & Stephen S. Golub, 2006. "OECD's FDI Regulatory Restrictiveness Index: Revision and Extension to more Economies," OECD Economics Department Working Papers 525, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:525-en
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    File URL: http://dx.doi.org/10.1787/373767060507
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    Cited by:

    1. Karabay, Bilgehan, 2010. "Foreign direct investment and host country policies: A rationale for using ownership restrictions," Journal of Development Economics, Elsevier, vol. 93(2), pages 218-225, November.
    2. World Bank, "undated". "World Bank East Asia and Pacific Economic Update, April 2014 : Preserving Stability and Promoting Growth," World Bank Other Operational Studies 18378, The World Bank.
    3. Degryse, Hans & Havrylchyk, Olena & Jurzyk, Emilia & Kozak, Sylwester, 2012. "Foreign bank entry, credit allocation and lending rates in emerging markets: Empirical evidence from Poland," Journal of Banking & Finance, Elsevier, vol. 36(11), pages 2949-2959.
    4. Przemyslaw Kowalski, 2008. "China and India - A Tale of Two Trade Integration Approaches," Trade Working Papers 22170, East Asian Bureau of Economic Research.
    5. Clifton, Judith & Díaz-Fuentes, Daniel, 2010. "The European Union, southern multinationals and the question of the 'strategic industries'," MPRA Paper 33040, University Library of Munich, Germany.
    6. Pelkmans, Jacques & Lejour, Arjan & Schrefler, Lorna & Mustilli, Federica & Timini, Jacopo, 2014. "The Impact of TTIP: The underlying economic model and comparisons," CEPS Papers 9710, Centre for European Policy Studies.
    7. Malick Souare & Boxi Zhou, 2016. "Foreign-affiliate presence and skilled labour demand," International Economics and Economic Policy, Springer, vol. 13(2), pages 233-254, April.
    8. A. E. Safarian, 2015. "Simplifying the Rule Book: a Proposal to Reform and Clarify Canada’s Policy on Inward Foreign Direct Investment," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 425, May.
    9. Bilgehan Karabay & Gernot Pulverer & Ewa Weinmüller, 2009. "Foreign Ownership Restrictions: A Numerical Approach," Computational Economics, Springer;Society for Computational Economics, vol. 33(4), pages 361-388, May.
    10. Sebastian Barnes & Romain Bouis & Philippe Briard & Sean Dougherty & Mehmet Eris, 2013. "The GDP Impact of Reform: A Simple Simulation Framework," OECD Economics Department Working Papers 834, OECD Publishing.
    11. Kaushal Kishore, 2016. "Tax Competition, Policy Competition and the Strategic Use of Policy Restrictions on Foreign Direct Investments," Working Papers 201684, University of Pretoria, Department of Economics.
    12. repec:bla:worlde:v:40:y:2017:i:3:p:632-652 is not listed on IDEAS
    13. Clifton, Judith & Díaz-Fuentes, Daniel, 2010. "Is the European Union ready for foreign direct investment from emerging markets?," MPRA Paper 33036, University Library of Munich, Germany.
    14. Fiori, Giuseppe & Nicoletti, Giuseppe & Scarpetta, Stefano & Schiantarelli, Fabio, 2007. "Employment Outcomes and the Interaction Between Product and Labor Market Deregulation: Are They Substitutes or Complements?," IZA Discussion Papers 2770, Institute for the Study of Labor (IZA).
    15. Paul Boothe & Richard Roy, 2008. "Business Sector Productivity in Canada: What Do We Know?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 3-13, Spring.

    More about this item

    Keywords

    contrôle étranger; FDI restrictions; foreign direct investment; foreign ownership; investissement direct étranger; restrictions sur l'IDE;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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