Foreign direct investment (FDI) restrictiveness is the measure of statutory restrictions for evaluating market access and other regulatory barriers to FDI.
This index considers four main types of restrictions: foreign equity limits, discriminatory screening or approval mechanisms, restrictions on key foreign personnel and operational restrictions. Only statutory measures that discriminate against foreign investors, or which are deemed particularly more burdensome to foreign investors, are accounted for as restrictions. Not considered are other aspects of the investment climate such as regulatory transparency, state monopolies and any preferential treatment for selected investors like treaty-covered investors or those in special economic zones. Nor are implementation issues addressed.
Each policy measure is scored on a scale from 0 (fully open to FDI) to 1 (fully closed), with sectoral scores reflecting the sum across all policy categories, capped at 1. Standard sector weights are applied consistently across countries and over time to capture differences in the economic significance of sectors, ensuring that any variation in scores between countries is attributed to policy differences. Data reflect regulatory restrictions as of end-December.
This indicator is measured as an index, with values between 0 for open and 1 for closed.