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The Zollverein and the Formation of a Customs Union

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  • Florian Ploeckl

Abstract

The Zollverein, the German customs union of 1834, was the institutional centrepiece of Germany's economic unification.� A bargaining model is applied to analyze the structure of its negotiation process and accession sequence.� The existence of negative coalition externalities, the effect of a coalition of non-participants, led Prusssia to choose sequential over multilateral negotiations.� The nature of these externalities within the areas of financial revenues, trade policy and domestic political economy also explains the observed accession sequence.� The choice of a customs union as institutional structure allowed Prussia to extract higher concessions from other states due to stronger coalition externalities.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number Number 84.

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Date of creation: 01 Aug 2010
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Handle: RePEc:oxf:wpaper:number-84

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Keywords: Customs union; Trade agreements; Coalition externalities;

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References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  1. Baldwin, Richard, 1993. "A Domino Theory of Regionalism," CEPR Discussion Papers 857, C.E.P.R. Discussion Papers.
  2. Jan Luiten van Zanden & Arthur van Riel, 2004. "Introduction to The Strictures of Inheritance: The Dutch Economy in the Nineteenth Century
    [The Strictures of Inheritance: The Dutch Economy in the Nineteenth Century]
    ," Introductory Chapters, Princeton University Press.
  3. Florian Ploeckl, 2008. "Borders, Market Size and Urban Growth, The Case of Saxon Towns and the Zollverein in the 19th Century," Working Papers 966, Economic Growth Center, Yale University.
  4. Helpman, Elhanan & Antras, Pol & Aghion, Philippe, 2007. "Negotiating Free Trade," Scholarly Articles 3351239, Harvard University Department of Economics.
  5. Shiue, Carol H., 2005. "From political fragmentation towards a customs union: Border effects of the German Zollverein, 1815 to 1855," European Review of Economic History, Cambridge University Press, vol. 9(02), pages 129-162, August.
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Citations

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Cited by:
  1. Florian Ploeckl, 2008. "Borders, Market Size and Urban Growth, The Case of Saxon Towns and the Zollverein in the 19th Century," Working Papers 966, Economic Growth Center, Yale University.
  2. Eric Schneider, 2012. "Real Wages and the Family: Adjusting Real Wages to Changing Demography in Pre-Modern England," Oxford University Economic and Social History Series _099, Economics Group, Nuffield College, University of Oxford.
  3. Eric Schneider, 2012. "Prices and Production: Agricultural Supply Response in Fourteenth-Century England," Economics Series Working Papers Number 97, University of Oxford, Department of Economics.
  4. Florian Ploeckl, 2010. "Borders, market access and urban growth; the case of Saxon towns and the Zollverein," Working Papers 2010/42, Institut d'Economia de Barcelona (IEB).
  5. Switgard Feuerstein, 2013. "From the Zollverein to the Economics of Regionalism," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(3), pages 367-388, May.
  6. Florian Ploeckl, 2012. "Space, settlements, towns: the influence of geography and market access on settlement distribution and urbanization," Working Papers 2012/23, Institut d'Economia de Barcelona (IEB).
  7. Ploeckl, Florian, 2013. "The internal impact of a customs union; Baden and the Zollverein," Explorations in Economic History, Elsevier, vol. 50(3), pages 387-404.
  8. Ploeckl, Florian, 2012. "Endowments and market access; the size of towns in historical perspective: Saxony, 1550–1834," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 607-618.

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