Hydroesterification of ethylene to methyl propionate has been studied using the catalyst precursor Pd(PPh 3 ) 2 (TsO) 2 , which is active in presence of PPh 3 and TsOH (TOF = 5700 h −1 at 120 • C, 40 atm (CO/C 2 H 4 = 1/1), Pd/PPh 3 /TsOH = 1/8/10, [Pd] = 2 × 10 −3 mol l −1 , solvent methanol, H 2 O = 800 ppm). In this paper we study the promoting effect of a hydride source, molecular hydrogen, water and p-toluenesulfonic acid (TsOH) and the inhibiting effect of p-benzoquinone. On the basis of experimental evidences, of the two possible initial steps of the catalytic cycle, the insertion of the olefin into a Pd-H species or into a Pd-OCH 3 species, it is suggested that the first plays a more important role.