0.25
Acquisitions
No foreign equity allowed
0.5
Foreign equity < 50% of total equity
0.25
Foreign equity > 50% but < 100% of total equity
0.125
II. Screening and approval* Approval required for new FDI/acquisitions of < USD 100mn or if corresponding to < 50% of total equity***
13. Distribution - Retail
2. Forestry
14. Transport (surface, water, air)
3. Fishery
15. Hotels & restaurants
4. Mining & Quarrying (incl. oil extract.) 16. Media (broadcasting and other media)
Equal weights advantage: simple, flexible and easy to use
Avoid the pitfall of variations in the index across countries that are due to the variations in the weights used, rather than to the severity of restrictions in place
11. Construction
22. Real estate
12. Distribution – Wholesale
Scoring methodology
Scores built on experts’ assessment of their importance
Simple average of 22 sectors
Statutory restrictions: All discriminatory measures affecting foreign investors, covering both market access and national treatment:
Equity restrictions by sector or overall, for acquisitions or greenfield projects Screening above a threshold or foreign equity share Restrictions on key personnel: managers, directors, experts Operational restrictions: land ownership, profit/capital repatriation, branching,
USD100mn or if corresponding to > 50% of total Notification (pre or post)
OECD FDI Regulatory Restrictiveness Index
A tool for benchmarking countries, measuring reform and assessing its impact
FDI Index: What does it measure?
an Financial services - Insurance
8. Manufacturing - Electric, Electronics 20. Financial services - Other financial
and Other Instruments
RESTRICTIONS
SCORES
I. Foreign equity limits
Start-ups and acquisitions
No foreign equity allowed
1
Foreign equity < 50% of total equity
0.5
Foreign equity > 50% but < 100% of total equity
activity (e.g. exporting) or country of origin Restrictions based purely on national security or prudential measures
22 sectors covered
1. Agriculture
5. Manufacturing - Food & Other
17. Communication (fixed & mobile
6. Manufacturing - Oil Ref. & Chemicals
telecoms)
7. Manufacturing - Metals, Machinery 18. Financial services - Banking
reciprocity, discriminatory minimum capital requirements etc.
What is not covered?
Degree of implementation/circumvention State monopoly or participation in a sector Special treatment accorded to a group of investors, whether by
services
9. Manufacturing - Transport Equipment 21. Business Services (accounting, legal,
10. Electricity (generation, distribution)
architecture, engineering)