Investment Policy Classification Framework: Full Spectrum of Pro-Investor and Restrictive Measures

UNCTAD's Investment Policy Monitor database systematically classifies global investment policy measures into two broad categories: "measures favourable to investors" and "restrictive measures". Pro-investor measures cover liberalization, facilitation, promotion, incentives and other; restrictive measures cover entry barriers and treatment/operation restrictions. This classification provides a standardized reference system for analyzing and comparing investment policy trends across countries.Source: UNCTAD, 2026 World Investment Report

UNCTAD Investment Policy Classification Framework

Main Category	Sub-Category	Specific Policy Instruments
Measures favourable to investors	Liberalization	Privatization; Lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); Removal (total or partial) of FDI screening or approval mechanisms; Lifting of foreign exchange restrictions; Liberalization of land access
	Facilitation	Streamlining of investment procedures (e.g. one-stop shops); Greater transparency of investment-related laws and procedures; Introduction by IPAs and others of new services (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms)
	Promotion	Establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; Adoption of investment promotion strategy and plans; Introduction of PPPs, auctions, and concessions initiatives or framework; Introduction of OFDI promotion initiatives
	Incentives	Adoption of new tax and financial incentives schemes for investment; Introduction of other incentives (e.g. citizenship by investment programmes); Adoption of new SEZ-related incentives; Enhancement of investor treatment and protection guarantees; Easing of labour or migration regulations on foreign hires and key personnel; Removal of operational restrictions on investment (e.g. local content requirements)
	Other	Enhancement of investor treatment and protection guarantees; Easing of labour or migration regulations on foreign hires and key personnel; Removal of operational restrictions on investment (e.g. local content requirements)
Restrictive measures	Entry	Introduction or tightening of entry restrictions (e.g. total or partial sectoral ban); Introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); Introduction or expansion of screening mechanisms for national security; Introduction or expansion of foreign exchange restrictions; Introduction or expansion of restrictions on foreign hires and key personnel
	Treatment and operation	Removal or reduction of investment incentives; Introduction or expansion of post-establishment requirements for local content; Reduction of guarantees for investment treatment and protection; Introduction or expansion of restrictions on OFDI

Source: UNCTAD, 2026 World Investment Report

From the UNCTAD investment policy classification framework, three key observations emerge:
Pro-investor measures cover five categories and nearly twenty instruments. From liberalization (opening sectors, lifting foreign exchange restrictions) to facilitation (one-stop shops, transparency), promotion (IPA establishment, PPP frameworks), incentives (tax breaks, SEZ benefits) and other measures, pro-investor policies form a full lifecycle chain covering pre-, during- and post-investment phases.
Restrictive measures operate at "entry" and "treatment/operation" stages. Entry-side measures include sectoral bans, joint venture requirements, national security screening and foreign exchange restrictions; treatment/operation-side measures include incentive cuts, local content requirements and OFDI restrictions. The report notes that national security screening has been the fastest-growing restrictive measure—expanding from 21 economies in 2016 to 52 in 2025.
The classification reflects a "dual-adjustment" mechanism of investment policy. Pro-investor measures attract investment by lowering entry barriers and operating costs; restrictive measures set boundaries and conditions to guide investment flows or protect sensitive areas. This framework allows governments to dynamically combine both types of measures according to development stages and strategic objectives.