The Effect of Mercosur on the Marketing of New Products

This article uses a database with a high level of disaggregation in order to measure the impact of Mercosur on the improvement of the new business relationships. So that, it will consider the extensive margin definition of trade developed by Baldwin & Di Nino (2008), namely: the number of products that did not belong to export products before signing the bilateral agreement. The results indicate that Mercosur has a positive impact on the probability of a new class of product to be traded (around 1.87%). It was also noted that Paraguay and Uruguay were the most benefit countries with the agreement.