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How Britain Unified Germany: Trade Routes and the Formation of the Zollverein

Author

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  • Huning, Thilo R.
  • Wolf, Nikolaus

Abstract

Does the location of a state relative to others matter? We argue that a state’s location can affect its bargaining power, and thus multilateral relations if trade costs depend on trade routes that pass through other states. This is an important, yet neglected aspect of economic history. We show how an exogenous border change—caused by Britain’s intervention at Vienna in 1815—affected the location and trade routes of Prussia and other German states. We find that this border change led to the formation of the first customs union in history, the German Zollverein of 1834.

Suggested Citation

  • Huning, Thilo R. & Wolf, Nikolaus, 2026. "How Britain Unified Germany: Trade Routes and the Formation of the Zollverein," The Journal of Economic History, Cambridge University Press, vol. 86(1), pages 109-145, March.
    • Handle: RePEc:cup:jechis:v:86:y:2026:i:1:p:109-145_4
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    Cited by:

    1. is not listed on IDEAS
    2. Albers, Hakon & Pfister, Ulrich, 2023. "State formation and market integration: Germany, 1780–1830," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 403-421.
    3. Thilo R. Huning & Fabian Wahl, 2016. "You Reap What You Know: Observability of Soil Quality, and Political Fragmentation," Working Papers 0101, European Historical Economics Society (EHES).
    4. Dohmen, Martin, 2022. "Freedom of enterprise and economic development in the German industrial take-off," European Economic Review, Elsevier, vol. 148(C).

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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