The OECD STRI

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.