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The OECD STRI

The OECD STRI. WTO data days 19 May 2009. Coverage. Pilot project sectors: Computer services Construction Professional services Telecommunications Pilot project countries: OECD members. Methodology. Gather information on services trade restrictiveness: Regulatory surveys

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The OECD STRI

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  1. The OECD STRI WTO data days 19 May 2009

  2. Coverage • Pilot project sectors: • Computer services • Construction • Professional services • Telecommunications • Pilot project countries: • OECD members

  3. Methodology • Gather information on services trade restrictiveness: • Regulatory surveys • OECD investment restrictiveness database • ITU regulatory database • RTAs • Government websites

  4. Methodology (cont.) • Transforming qualitative information into numerical scores: • Measuring all variables on the same scale: • Most regulatory information is binary – scores are binary [0, 1] • Ensuring that the index values are comparable across countries and across time: • Scores independent of the sample of countries included. • Anchored to an absolute level • Selection of variables for the index: • Statistical analysis aiming at eliminating overlapping and irrelevant variables

  5. Methodology (cont) • Weighting of indicators: • Expert judgement the basis for weighting types of measures: • Consistent with theory/literature • Robust to alternatives (equal weights, PCA, within the confidence interval of Monte Carlo simulations on random weights). • Equal weights within types/categories of measures

  6. Methodology cont. • Aggregation • Weighted average of types • The individual measures carry their weight times the weight of the heading under which they are found over to different classifications: • By GATS mode • By market access/national treatment versus domestic regulation • By discriminatory/non-discriminatory • By restrictions on entry versus restrictions on ongoing operations • By subsector when relevant

  7. For comparison: • Estimate trade costs from trade data: • Trade costs a function of internal trade and external trade • Result for total services: • STRI correlated with this measure

  8. Output • Interactive regulatory database on the OECD website • Papers presenting the indicators and documenting the methodology • One paper for each sector • A technical note • Presented at expert meetings 2-3 July • Published towards the end of the year on the OECD website.

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