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Full-Text Articles in Social and Behavioral Sciences
The Internal Impact Of A Customs Union; Baden And The Zollverein, Florian Ploeckl
The Internal Impact Of A Customs Union; Baden And The Zollverein, Florian Ploeckl
Florian Ploeckl
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 …
Local Convergence: Baden 1829-1847, Florian Ploeckl
Local Convergence: Baden 1829-1847, Florian Ploeckl
Florian Ploeckl
This paper investigates whether internal institutional homogenisation during nation-state formation led to internal local convergence. We use the case of Baden with a new economic measure based on tax revenues derived from archival records. Our measure of local economic activity shows no evidence for convergence, unconditional or conditional, for the period 1829–1847. However, looking at sub-periods the six year interval after Baden's 1836 entry into the Zollverein customs union exhibits an adjustment effect resembling absolute convergence. Rejecting urbanisation as the reason behind this pattern we discuss alternative mechanisms in particular the reallocation of labour.