The Zollverein and the Formation of a Customs Union
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 on non-participants, led Prussia 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.
|Date of creation:||20 Aug 2010|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.nuff.ox.ac.uk/economics/|
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.:
- Baldwin, Richard, 1993.
"A Domino Theory of Regionalism,"
CEPR Discussion Papers
857, C.E.P.R. Discussion Papers.
- 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.
- Helpman, Elhanan & Antras, Pol & Aghion, Philippe, 2007.
"Negotiating Free Trade,"
3351239, Harvard University Department of Economics.
- 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.
- 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.
- Ploeckl, Florian, 2008. "Borders, Market Size and Urban Growth, The Case of Saxon Towns and the Zollverein in the 19th Century," Working Papers 55, Yale University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:nuf:esohwp:_084. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maxine Collett)
If references are entirely missing, you can add them using this form.