Services Trade Restrictiveness Index (STRI): Financial Services

Dorothée Rouzet, Hildegunn Nordås, Frédéric Gonzales, Massimo Geloso Grosso, Iza Lejárraga, Sébastien Miroudot and Asako Ueno
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Frédéric Gonzales: OECD
Massimo Geloso Grosso: OECD
Iza Lejárraga: OECD
Asako Ueno: OECD

No 175, OECD Trade Policy Papers from OECD Publishing

Abstract: This paper presents the services trade restrictiveness indices (STRIs) for financial services. 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 indices are calculated for 40 countries, the 34 OECD members and Brazil, China, India, Indonesia, Russia and South Africa. The STRIs capture de jure restrictions. This report presents the first vintage of indicators for commercial banking and insurance services and captures regulations in force in 2013. The scores in commercial banking range between 0.06 and 0.55, with a sample average of 0.19. The scores in insurance services range between 0.05 and 0.63, with a sample average of 0.20. The results are mainly driven by restrictions on market entry, where significant impediments remain in the form of foreign equity limits, restrictions on legal form, discriminatory licensing criteria and restrictions on cross-border transactions. Barriers to competition, including regulation of products and prices and preferential treatment granted to state-owned financial institutions, also make a substantive contribution to the index values. The paper presents the list of measures included in the indices, the scoring and weighting system for calculating the indices and an analysis of the results.

Keywords: bank; insurance; regulation; regulatory reform; services liberalisation; services trade restrictions; trade in services; trade policy (search for similar items in EconPapers)
JEL-codes: F13 F14 F21 G21 G22 G28 L88 (search for similar items in EconPapers)
Date: 2014-11-04
New Economics Papers: this item is included in nep-cis, nep-ias, nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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