The Investment Facilitation Index (IFI): Quantifying Domestic Investment Facilitation Frameworks

Abstract Investment facilitation is an increasingly important policy tool to promote foreign investment. However, we know very little about its prevalence. This paper introduces a new dataset for measuring the adoption of investment facilitation measures at country level. The Investment Facilitation Index (IFI) covers 101 measures, grouped into six policy areas, and maps adoption across 142 economies. The paper outlines the conceptual and methodological framework of the IFI, analyses the current levels of adoption, and demonstrates the index’s robustness. The data show that economies with lower adoption rates typically belong to the low-income or lower-middle-income groups, often located in Sub-Saharan Africa, Latin America and the Caribbean. This dataset serves as a benchmark for assessing the design and impact of international agreements, such as the Investment Facilitation for Development Agreement (IFDA). It can also support the IFDA implementation by guiding domestic assessments of technical assistance needs and capacity development.