**Appendix 2: Sources, definitions, and coverage of policy variables**

|**Variable**|**Source**|**Definition**|**Category**|**Years**|**Country coverage **|
|---|---|---|---|---|---|
|Infrainvest|OECD|Total infrastructure investment (%<br>of GDP)|infrastructure|1995-2011|AUS, AUT, BEL, BGR, CAN, CHE, CZE, DEU,<br>DNK, ESP, EST, FIN, FRA, GBR, GRC, HRV,<br>HUN, IND, IRL, ISL, ITA, JPN, KOR, LTU, LUX,<br>LVA, MEX, MLT, NLD, NOR, NZL, POL, PRT,<br>ROU, RUS, SVK, SVN, SWE, TUR & USA|
|Air freight|WDI|Air transport, freight (million ton-<br>km normalized byGDP)|infrastructure|1995-2011|Full except TWN|
|Rail|WDI|Rail lines (total route-km<br>normalized by population and<br>intrapolated)|infrastructure|1995-2011|Full except TWN, BRN, CRI, CYP, HKG, ISL,<br>MLT, SGP|
|Port|WEF|Quality of port infrastructure, 1-7<br>(best)|infrastructure|2006-2011|Full|
|Road|WEF|Quality of roads, 1-7 (best)|infrastructure|2006-2011|Full|
|Internet|WDI|Internet users (per 100 people)|connectivity|1995-2011|Full except TWN|
|LPI logistics|LPI|Competence and quality of logistics<br>services(1-5=high)|<br>connectivity|2007/10|Full except TWN & BRN|
|LPI customs|LPI|Efficiency of customs clearance<br>process(1-5=high)|connectivity|2007/10|Full except TWN & BRN|
|LPI overall|LPI|Overall (1-5=high)|connectivity|2007/2010|Full except TWN & BRN|
|Export time|WDI|Time to export (days)|connectivity|2005-2011|Full except TWN|
|Import time|WDI|Time to import (days)|connectivity|2005-2011|Full except TWN|
|Investment<br>freedom|Heritage<br>foundation|Restrictions imposed on investment<br>(100=best)|<br>investment &<br>tradepolicy|1995-2011|Full except BRN|
|STRI WB|Borchert, Gootiz<br>and Mattoo<br>(2012)|,<br>Services trade restrictiveness index,<br>simple mean|<br>investment &<br>trade policy|2008/09/10|Full except TWN, BRN, CHE, CYP, EST, HKG,<br>HRV, ISL, ISR, LUX, LVA, MLT, NOR, SVK,<br>SVN,SGP|
|FDI inflows|WDI|Foreign direct investment, net<br>inflows(% of GDP)|investment &<br>tradepolicy|1995-2011|Full except TWN|
|Services trade|WDI|Exports and imports of services (%<br>of GDP)|investment &<br>tradepolicy|2005-2011|Full except TWN|
|Openness|WDI|Exports and imports of goods and<br>services(% of GDP)|investment &<br>tradepolicy|1995-2011|Full except TWN|
|Political<br>stability|WGI|Perceptions on political stability<br>and absence of violence/terrorism<br>(2.5=best)|business clim.<br>& institutions|1996-2011|Full|
|Corruption|Heritage<br>foundation|Freedom from corruption<br>(100=best)|business clim.<br>& institutions|1995-2011|Full except BRN|
|Property<br>rights|Heritage<br>foundation|Degree to which a country’s laws<br>protect private property rights and<br>to which its government and<br>judiciary enforce those laws<br>(100=best)|business clim.<br>& institutions|1995-2011|Full except BRN|
|Doing|WDI|Ease of doing business distance to|business clim.|2004-2011|Full except TWN|
|business||frontier(100=best)|& institutions|||
|Dom.<br>competition|WEF|Domestic competition, 1-7 (best)|business clim.<br>& institutions|2006-2011|Full|
|For.<br>competition|WEF|Foreign competition, 1-7 (best)|business clim.<br>& institutions|2006-2011|Full|
|<br>Financial<br>freedom|Heritage<br>foundation|Banking efficiency and<br>independence from government<br>control/interference(100=best)|<br>financial<br>development|1995-2011|Full except BRN|
|Private credit|WDI|Domestic credit to private sector (%<br>of GDP)|<br>financial<br>development|1995-2011|Full except TWN|
|Labor<br>freedom|Heritage<br>foundation|Legal and regulatory framework of<br>a country’s labor market(100=best)|labor markets|1995-2011|Full except BRN|

39