The FDI Regulatory Restrictiveness Index (‌FDI Index) measures statutory restrictions on foreign direct investment in 55 countries, including all OECD and G20 countries, and covers 22 sectors. As of 5 November 2012, the FDI Index covers 6 years: 1997, 2003, 2006, 2010, 2011 and 2012.

Measuring FDI restrictiveness

The FDI Index gauges the restrictiveness of a country’s FDI rules by looking at the four main types of restrictions on FDI:

• Foreign equity limitations
• Screening or approval mechanisms
• Restrictions on the employment of foreigners as key personnel
• Operational restrictions, e.g. restrictions on branching and on capital repatriation or on land ownership

>> Data by measure and year (xls)

The FDI Index is not a full measure of a country’s investment climate. A range of other factors come into play, including how FDI rules are implemented. Entry barriers can also arise for other reasons, including state ownership in key sectors. A country’s ability to attract FDI will be affected by factors such as the size of its market, the extent of its integration with neighbours and even geography.

Nonetheless, FDI rules are a critical determinant of a country’s attractiveness to foreign investors. Furthermore, unlike geography, FDI rules are something over which governments have control. FDI restrictions tend to arise mostly in primary sectors such as mining, fishing and agriculture, but also in media and transport.

The 2010 update on the OECD's FDI Restrictiveness Index gives more information about how the FDI Restrictiveness Index is calculated.

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