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.
OECD's FDI Regulatory Restrictiveness Index
Revision and Extension to more Economies
Working paper
OECD Economics Department Working Papers
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Abstract
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Working paper20 September 2024
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