respective sectors (100 being completely open). The sectors are listed below in twelve groups:

1. Agriculture and forestry;

2. Mining and Oil & Gas; 3. Manufacturing (food processing, manufacturing of basic chemicals and light manufacturing); 4. Electricity (electric power generation (biomass, solar, wind) transmission and distribution); 5. Waste management and water supply (waste management and recycling and water distribution); 6. Transport (freight rail transport, freight transport by road, internal waterways freight transportation, international passenger air transport, port operation and courier activities); 7. Telecom (fixed-line telecommunications infrastructure and services and wireless/mobile telecommunications infrastructure and services); 8. Media (newspaper publishing and television broadcasting); 9. Financial services (banking, life insurance and health insurance); 10. Education (higher education); 11. Accounting (accounting, bookkeeping and auditing services; tax consultancy); 12. Tourism (accommodation services).

While the coverage of the indicators is not exhaustive, it captures most of the major economic sectors, which in aggregate account for over 80% of GDP and FDI flows<sup>5</sup> . The indicators place particular emphasis on providing detailed measures of the service sectors, given the relative prevalence of FDI restrictions in services in relation to other economic sectors, as well as the growing importance of services in the global economic output and FDI flows. FDI in services sector rose by 15% in 2011, reaching $570 billion, after falling sharply in 2009 and 2010 (World Investment Reports 2012, 2004 and 2009). Coverage of the primary and manufacturing sectors is relatively limited given that past studies have shown - and this report confirms - that most economies do not restrict foreign ownership in these sectors. The coverage of the service sectors, though more extensive, is also not exhaustive. For example, the indicators do not include certain public utilities (such as natural gas distribution) or professional services (such as legal and consulting services). These and other service sectors were not included in the survey questionnaire for one or more of the following reasons: FDI plays a small role in the sector, FDI restrictions (if present) often do not take the form of equity limits, views in the development literature diverge on the appropriate role of foreign capital in the sector, and methodological constraints limited the length of the questionnaire and potential quality of responses. Finally, sectors where economies may have legitimate security, cultural, or religious reasons for prohibiting FDI are omitted from the indicators’ coverage. These include weapons, nuclear power, and manufacturing of tobacco products and alcoholic beverages.

As mentioned above, some restrictions to FDI are not restrictions on equity participation. A recent database created by the Development Research Group at the World Bank provides information on services trade policies and shows their importance for investment flows and access to services which offers complementary information to the data presented in this paper. In particular, it shows that “restrictions on foreign acquisitions, discrimination in licensing, restrictions on the repatriation of earnings and lack of legal recourse all have a significant and sizable negative effect” (Borchert et al., 2012).

The _Starting a Foreign Investment_ indicators look specifically at the process of establishing a wholly foreign-owned business. It partially builds on the _Doing Business_ data on Starting a Business which

> 5 FDI database of UNCTAD (www.unctad.org) and World Development Indicators database of the World Bank Group (data.worldbank.org).

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