The effects of capital inflows on the economic growth in the Med Area

There is a wide number of empirical studies that seek to identify the most relevant determinants of a country's economic growth. In this paper, in particular, we analyze the effects of capital inflows and test these effects with reference to the eleven Mediterranean Countries that took part to the Barcelona Euro-Mediterranean Conference in 1995. We estimate a dynamic panel model exploiting a GMM estimation method and using yearly data in the period ranging from 1990 to 2000. The different regressions performed are based on a data set provided by The World Bank.