This paper examines the relationship between trade orientation, trade distortions, and growth in developing countries using a cross-country dataset. The author develops an endogenous growth model that emphasizes the process of technological absorption in small developing countries. The model suggests that countries that liberalize their international trade and become more open tend to grow faster, with the extent of this growth depending on key parameters. Using nine alternative indicators of trade orientation, the paper finds that more open economies tend to grow faster than those with trade distortions. The results are robust to various estimation methods, correction for errors in variables, and the deletion of outliers. The paper concludes by suggesting that future research should focus on the empirical investigation of the microeconomics of technological innovations and growth.This paper examines the relationship between trade orientation, trade distortions, and growth in developing countries using a cross-country dataset. The author develops an endogenous growth model that emphasizes the process of technological absorption in small developing countries. The model suggests that countries that liberalize their international trade and become more open tend to grow faster, with the extent of this growth depending on key parameters. Using nine alternative indicators of trade orientation, the paper finds that more open economies tend to grow faster than those with trade distortions. The results are robust to various estimation methods, correction for errors in variables, and the deletion of outliers. The paper concludes by suggesting that future research should focus on the empirical investigation of the microeconomics of technological innovations and growth.