RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE | Page 7

2. OVERVIEW OF THE METHODOLOGY
INDICATORS SELECTION
The overall assessment of restrictiveness is based on the analysis of the aspects regulating the functioning
of the retail sector. A composite indicator, the Retail Restrictiveness Indicator, or RRI is built to
demonstrate the various levels of restrictiveness for different regulatory aspects. In this study, the
combination of various indicators is derived by applying equal weights to the elements comprising the RRI.
The RRI indicator consists of two main pillars: the establishment and the operational restrictions, both
contributing to 50% of the ultimate score. Each of the components consists of some appropriate indicators
conceptually and statistically belonging to this pillar. Particularly, the RRI consists of nine indicators related
to a retail establishment (the establishment pillar) and eight indicators related to retail operations and
antitrust laws (operations and competition pillar). The proportionally equal weights are assigned to
particular indicators within the pillar.
FIGURE 2: STRUCTURE OF THE RETAIL RESTRICTIVENESS INDICATOR
For detailed description on each of the components of the RRI see Annex 1.
COUNTRY SELECTION
The comparison was executed among 13 countries in two groups:
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• 3 major EU countries with the most extensive regulation for the retail sector, as established by
earlier studies: Spain, Italy, Germany (further in the report, the group could be referred to as
“Established European Economies” or “Highly regulated member states”)
• 10 Emerging Europe countries, representing a mix of current Member States and non-member
states: Poland, Lithuania, Latvia, Estonia, Ukraine, Russian Federation, Belarus, Moldova, Serbia
and Romania.