Endogenous growth in a cross-section of countries

We estimate two versions of Romer's model of endogenous technological chang e that allow for population growth and human capital accumulation. In one o f these versions, estimates from international cross-sectional data yield p arameter values that are consistent with prior information, and tests of ov eridentifying restrictions are not rejected. Trade openness increases the e ffectiveness with which human capital generates new knowledge, and improves the model's predictive performance. The Romer model represents a valuable template on which to build mon sophisticated models of endogenous long-run growth without scale effects. (C) 2000 Elsevier Science B.V. All rights res erved.