Testing the Uzawa–Lucas model with OECD data

•The paper tests the Uzawa–Lucas type of endogenous growth models.•A restricted ARDL model is applied to a panel of 20 OECD countries.•Public education expenditure is used as proxy for human capital formation.•Past human capital growth is found to have a positive impact on GDP growth.•This lends empirical support to the Uzawa–Lucas model.

The paper tests the Uzawa–Lucas model of endogenous growth using a modified Granger-causality test and panel data for 20 OECD countries. The results favour the human capital augmented endogenous growth model against both the exogenous growth model à la Solow and endogenous growth models of the AK type.