1. The OECD STRI
WTO data days
19 May 2009

2. Coverage Pilot project sectors: Pilot project countries:
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.