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Services Trade Restrictiveness Index (STRI): Financial Services

Author

Listed:
  • Dorothée Rouzet

    (OECD)

  • Hildegunn Kyvik Nordås

    (OECD)

  • Frédéric Gonzales

    (OECD)

  • Massimo Geloso Grosso

    (OECD)

  • Iza Lejárraga

    (OECD)

  • Sébastien Miroudot

    (OECD)

  • Asako Ueno

    (OECD)

Abstract

This paper presents the services trade restrictiveness indices (STRIs) for financial services. The STRIs are composite indices taking values between zero and one, zero representing an open market and one a market completely closed to foreign services providers. The indices are calculated for 40 countries, the 34 OECD members and Brazil, China, India, Indonesia, Russia and South Africa. The STRIs capture de jure restrictions. This report presents the first vintage of indicators for commercial banking and insurance services and captures regulations in force in 2013. The scores in commercial banking range between 0.06 and 0.55, with a sample average of 0.19. The scores in insurance services range between 0.05 and 0.63, with a sample average of 0.20. The results are mainly driven by restrictions on market entry, where significant impediments remain in the form of foreign equity limits, restrictions on legal form, discriminatory licensing criteria and restrictions on cross-border transactions. Barriers to competition, including regulation of products and prices and preferential treatment granted to state-owned financial institutions, also make a substantive contribution to the index values. The paper presents the list of measures included in the indices, the scoring and weighting system for calculating the indices and an analysis of the results.

Suggested Citation

  • Dorothée Rouzet & Hildegunn Kyvik Nordås & Frédéric Gonzales & Massimo Geloso Grosso & Iza Lejárraga & Sébastien Miroudot & Asako Ueno, 2014. "Services Trade Restrictiveness Index (STRI): Financial Services," OECD Trade Policy Papers 175, OECD Publishing.
    • Handle: RePEc:oec:traaab:175-en
    DOI: 10.1787/5jxt4nhssd30-en
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    References listed on IDEAS

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    Cited by:

    1. Barbe, Andre & Chambers, Art & Khachaturian, Tamar & Riker, David, 2017. "Modeling Trade in Services: Multiple Modes, Barriers to Trade, and Data Limitations," Conference papers 332919, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Daniel Schwanen & Dan Ciuriak & Jeremy Kronick, 2015. "Opening up New Trade Routes for Financial Services: Canada’s Priorities," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 442, December.
    3. Zongo, Amara, 2020. "The Impact of Services Trade Restrictiveness on Food Trade," MPRA Paper 101658, University Library of Munich, Germany.
    4. Masood, Maria, 2019. "New evidence on income and the geographical distribution of imports: The case of audiovisuals," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 717-734.
    5. Amara Zongo, 2021. "The impact of services trade restrictiveness on food trade," International Economics, CEPII research center, issue 166, pages 71-94.
    6. Rueda-Cantuche, José & Kerner, Riina & Cernat, Lucian & Ritola, Veijo, 2016. "Trade in services by GATS modes of supply: Statistical concepts and first EU estimates," DG TRADE Chief Economist Notes 2016-3, Directorate General for Trade, European Commission.

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    More about this item

    Keywords

    bank; insurance; regulation; regulatory reform; services liberalisation; services trade restrictions; trade in services; trade policy;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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