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Borders, market access and urban growth; the case of Saxon towns and the Zollverein

  • Florian Ploeckl


    (University of Oxford)

The Zollverein, the 1834 customs union between independent German states, removed all internal borders. This paper investigates its economic impact focussing on urban population growth in the state of Saxony. Implications from a economic geography model are tested with a data set on town populations and location characteristics as well as an improved distance measure created with GIS techniques to include geography and infrastructure. Saxony's Zollverein membership led to significantly higher growth for towns close to the liberalized border. The effect depended on a town's size, was reinforced through neighboring markets and worked through influencing migration and natural increase.

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Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2010/42.

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Length: 65 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:ieb:wpaper:2010/10/doc2010-42
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  1. J. Ernesto L�pez-C�rdova and Chris Meissner., 2000. "Exchange-Rate Regimes and International Trade: Evidence from the Classical Gold Standard Era," Center for International and Development Economics Research (CIDER) Working Papers C00-118, University of California at Berkeley.
  2. Florian Ploeckl, 2015. "The Zollverein and the Formation of a Customs Union," School of Economics Working Papers 2015-08, University of Adelaide, School of Economics.
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