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The internal impact of a customs union; Baden and the Zollverein

Florian Ploeckl ()

Explorations in Economic History, 2013, vol. 50, issue 3, 387-404

Abstract: Tariffs can affect the growth of states. But how do they affect regional growth within states? Using Baden's 1836 entry into the Zollverein, the customs union of German states, I investigate the internal impact of a change in tariffs. With a new data set of regional employment data I demonstrate that the Zollverein had a substantial positive effect. Two market access effects are shown, one follows the standard market access predictions and the second triggers the direct investment by Swiss entrepreneurs in German regions close to their home base. Furthermore occupational change within the crafts sector was shifting labour towards higher taxed occupations and towards the region close to Switzerland.

Keywords: Customs union; Market access; Industrialization; Occupational upgrading (search for similar items in EconPapers)
JEL-codes: F13 F14 N13 N93 R12 (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1016/j.eeh.2013.05.001

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