1887

OECD Trade Policy Papers

This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

English

Services Trade Restrictiveness Index (STRI): Scoring and Weighting Methodology

This paper presents the scoring and weighting methodology for calculation of the services trade restrictiveness indices (STRIs) for 18 sectors. The STRIs are composite indices taking values between zero and one, zero representing an open market and one a market completely closed to foreign services providers. The scoring system is based on binary scoring. To reconcile the complexity of services trade restrictions with binary scoring, non-binary measures are broken down to multiple thresholds; complementary measures are grouped and scored as zero only if all measures in the bundle are not restrictive. Finally in cases where one restriction renders others irrelevant, those measures that are rendered irrelevant are automatically scored one. The paper presents the general methodology that applies to the core measures found in all sectors as well as sector-specific scoring where relevant.

English

Keywords: composite indicators, services trade restrictions
JEL: F14: International Economics / Trade / Empirical Studies of Trade; C10: Mathematical and Quantitative Methods / Econometric and Statistical Methods and Methodology: General / Econometric and Statistical Methods and Methodology: General; C80: Mathematical and Quantitative Methods / Data Collection and Data Estimation Methodology; Computer Programs / Data Collection and Data Estimation Methodology; Computer Programs: General; F13: International Economics / Trade / Trade Policy; International Trade Organizations; F53: International Economics / International Relations, National Security, and International Political Economy / International Agreements and Observance; International Organizations
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