The Role of Economic Freedom in the Relationship between Foreign Direct Investment and Economic Growth: Evidence from Former Socialist Countries

This study investigates the role of economic freedom in attracting foreign direct investment (FDI) and its impact on growth 15 former socialist countries from 2000 to 2021 through Generalized Method Moments estimation method. Our findings suggest that higher helps attract additional investment. Furthermore, we found a one-unit increase index increases real gross domestic product per capita by 0.019%. The also reveal 1% FDI leads 0.585% surge income capita, whereas trade openness surges 1.24%. These results has positive growth, suggesting is an important factor driving development countries. provides policy recommendations based findings, highlighting importance promoting free healthy competition, transparency, accountability, education infrastructure.