Chapter 4 Investment Climate Study of ASEAN Member ... - ERIA

possible score for the degree of restrictiveness in his study. Our method has its ownlimitations. It can be subjected to random and arbitrary weight. However, this isassuaged by using standards on all restrictions and by careful analysis, in addition tocomparison of the results of one country with another.study.All in all, 21 sectors that include 88 ISIC two-digit subsectors were evaluated in thisTable 3.1. Assessment of FDI RestrictionsTable 3.1 Assessment of FDI Restrictions(Fully liberalized = 0)Restriction on Ownership and Market Access (weight = 0.4)No foreign equity is allowed 11-19 percent is allowed 0.9Reservation on ownership and market access 0.7520-34 percent is allowed 0.635-49 percent is allowed 0.550-74 percent is allowed 0.375-99 percent is allowed 0.2No restriction but bound 0.1Commercial presence is required 0.1No restrictions 0National Treatment (weight = 0.2)No national treatment 1Reservation on national treatment 0.75No restrictions 0Screening and Approval (weight = 0.1)Objections in case the investment is contrary to national interest 1Investment is required to show economic benefits before approval 0.9Reservations for future limitations 0.75Objections based on the size of investment 0.5Prior or post notification 0.1No restrictions 0Board of Directors and Management Composition (weight = 0.1)All members of the management should be local 1Reservations for future restrictions 0.75Majority should be local 0.5At least one is local 0.25Should be locally license 0.1No restrictions 0Movement of investors (weight = 0.1)No entry 1Less than one year 0.9Reservations for further measures on entry 0.75One to two years 0.6Three to four years 0.5More than four years but less than 10 0.2No restrictions 0182Performance requirements (weight = 0.1)Local contents 0.25Others 0.1