The globalization process has accelerated, particularly as of the 1980s, and countries began to remove obstacles on the flows of goods, services and capital. Hence, substantial increases have resulted in both global trade volume and cross-border capital flows. Moreover, countries have improved their institutional and legal infrastructure to achieve sustainable economic growth and attract foreign capital. This study examines the impact of openness and economic freedom onthe economic growth of the transition economies in the European Union during the 1996-2012 period, through the use of panel data analysis. We have found there is a long-run relationship among the variables and both economic freedom and trade openness have a positive impact on economic growth, while financial openness has a negative impact on economic growth.
