The OECD STRI WTO data days 19 May 2009

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

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

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

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

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

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

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.