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Was Germany ever united? Borders and domestic trade, 1885 - 1933

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  • Wolf, Nikolaus

Abstract

Was Germany ever united? Given the historical circumstances of Germany's unification in the 19th century there is no obvious answer to this question. But such an answer can affect the prospects of the post-1989 unification process, and beyond this of European integration. We provide an econometric analysis of Germany's economic integration across various internal borders from the foundation of the Kaiserreich until the end of the Weimar Republic. This analysis is based on a new comprehensive set of domestic trade flow data on railways and waterways, covering all parts of Germany 1885-1933. First, the disintegration effects by the separation of Alsace-Lorraine and Western Poland from Germany after the Versailles treaty were somewhat limited by previous disintegration of these regions. Second, while there is broad support for increasing integration across old political, administrative, and confessional borders between 1885 and 1933, a geographical divide between eastern and western parts of Germany had a persistent trade diverting effect well into the 1930s.

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  • Wolf, Nikolaus, 2006. "Was Germany ever united? Borders and domestic trade, 1885 - 1933," Discussion Papers 2006/4, Free University Berlin, School of Business & Economics.
    • Handle: RePEc:zbw:fubsbe:20064
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    References listed on IDEAS

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    Cited by:

    1. Koulovatianos, Christos & Schrder, Carsten & Schmidt, Ulrich, 2009. "Nonmarket Household Time and the Cost of Children," Journal of Business & Economic Statistics, American Statistical Association, vol. 27, pages 42-51.
    2. Heinemeyer, Hans Christian, 2006. "The impact of new borders on trade: World War I and the economic disintegration of Central Europe," Discussion Papers 2006/14, Free University Berlin, School of Business & Economics.

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    More about this item

    Keywords

    Germany; Economic Integration; Railways; Waterways;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative

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