predicts that international
differences in steady-state output per person are due to international differences in technology for a constant
capital–output ratio. However, most of the empirical growth literature that refers to the Solow model
has employed a specification where steady-state differences in output per person are due to international
differences in the capital–output ratio for a constant level of technology. My empirical results show that the
former specification can summarize the data quite well by using a measure of institutional technology and
treating the capital–output ratio as part of the regression constant. This reinterpretation of the cross-country
Solow model provides an implication for empirical studies of international trade. Harrod-neutral technology
differences, as presumed by the Solow model, can explain why countries have different factor intensities and
may end up in different cones of specialization.