Estonia has placed 14th in the World Economic Freedom rankings, making it the highest placed of the Baltic States.
Compiled and published each year by the Wall Street Journal and the Heritage Foundation, the country has climbed two places from its position last year.
The news may be of interest to those looking to buy property in Estonia, with it making improvements in terms of its monetary and labour freedoms.
However, the index did note that relatively high government expenditure in the country was hampering further progress from being made.
"Public finance management would benefit from longer-term budget balancing goals, clearer co-ordination between central and local governments, and better targeting of social benefits," the publication says.
Hong Kong placed first in the index, which measures freedoms ranging from property rights to corruption, followed by Singapore and Australia.
Meanwhile, Estonia became the 17th country to adopt the euro currency on January 1st 2011 after it received final approval from EU finance ministers earlier last year.