Barriers and Opportunities for Enhancing Capital Flows
In the COMCEC Member Countries
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5. Assess the degree to which the authorities favour
domestic interests over foreign companies.
 No favouritism; level playing
 Some strictly limited favouritism
 Moderate degree of favouritism
 High degree of favouritism
 Very high degree of favouritism
Consider factors such as government's proclivity to promote
"national champions", and anti-foreign collusion between
government and domestic business groups.
1. Capital account liberalisation
 Full liberalisation
 Almost all capital flows free; a few sectors excepted;
minor administrative procedures
 Inward and outward investment allowed, but there
are significant regulatory restrictions to capital mobility
 Special government approval required for any
outward investment; heavy restrictions on inward flows
 Tightly controlled capital flows
**2. Tariff and non-tariff protection (measured by average
tariff levels; if non-tariff barriers such as trade quotas,
licensing and import inspection are significant, score is
reduced by at least 1 point)
 Very low: if average tariff less than 5%
 Low: if average tariff between 5% and 10%
 Moderate: if average tariff between 10.1% and 15%
 High: if average tariff between 15.1% and 20%
 Very high: if average tariff more than 20%
*3. Openness: actual trade as % of GDP versus “expected”
trade (“expected” trade based on pooled regression relating
share of trade in GDP to geographic size, population and
location relative to potential trading partners)
 Very high: if more than 1.5
 High: if between 1.17 and 1.5
 Moderate: if between 0.91 and 1.16
VI Foreign trade and exchange
regimes