Regulatory Restrictiveness Index: U.S. Ranks Below Most OECD Counties

The FDI Regulatory Restrictiveness Index measures statutory restrictions on foreign direct investment (FDI). The index for a specific country is constructed by taking into account four types of restrictions. These restrictions include: (1) foreign equity limitations; (2) screening or approval mechanisms; (3) restrictions on employment of foreigners as key personnel; and (4) operational restrictions.

The Index is bounded between the values of zero and one, with zero representing the least restrictive value and one the most restrictive. As illustrated in the table below, United States is one of the most restrictive countries in terms of total FDI and FDI in financial services in 2013. It ranks 26th in restrictiveness of FDI relating to financial services and 27th in restrictiveness of overall FDI, leaving the U.S. one of the more restrictive countries when compared to its European peers.