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This article investigates the relationship between institutional quality and the level of investmentinflows into post-communist countries. We attempt to empirically verify the argument thatinstitutional determinants are essential in explaining the variation in investment inflows intotransition economies after the demise of socialism in the early 1990s. The role of institutions isassessed using Economic Freedom indices provided by the Heritage Foundation. Consequently,to investigate the progressdoi:10.18267/j.aop.483 fatcat:6y5dcfjkg5cmvo5ack4bzvbgdu