Observations on the relations between the transition of eastern European central Asian economies, economic growth, and direct foreign investment

The first hypothesis tested, that free markets promote economic growth, is corroborated by data relating to the transition economies of eastern Europe/central Asia. The second, that free markets encourage direct foreign investment (DFI) is not validated by using one series that measures free markets, but is given credibility by using a seemingly more accurate regressor. The null hypothesis relating to the third hypothesis that there is no positive correlation between economic growth and DFI is not rejected. We conclude that all three hypotheses require further testing as data become more abundant.