The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • Marcelo Olarreaga
Reference work entry


Mercosur is an ambitious economic integration project, launched in 1991, which includes Argentina, Brazil, Paraguay and Uruguay. The early and quasi-complete liberalization of intra-regional trade and the adoption of a common external tariff by 1996 were accompanied by significant increases in intra-regional trade. However, the most difficult and challenging steps towards a common market (its original objective) has been slow since then, in part due to the absence of strong regional institutions.


Andean community Central-bank independence Common external tariffs Comparative advantage Customs unions Foreign direct investment Free-trade agreements Intra-regional trade Mercosur Monetary union Non-tariff barriers Tariffs Trade diversion World Trade Organization 

JEL Classifications

F1 F15 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Marcelo Olarreaga
    • 1
  1. 1.