ABSTRACT

Thirty-four years ago Jacob Viner could still point to the Zollverein as the most important example and general model of a customs union: 'generalisations about the origin, nature, and consequences of unification of tariffs tend to be based mainly or wholly on the German experience'. The outlines of the following economic model of the nature, causes and consequences of customs unions are clear and consistent: customs unions are not generally the result of economic calculations, nor do they have clear welfare effects. Customs unions between developing countries should therefore be evaluated differently from those between developed economies. The examination of the Zollverein on the basis of the general customs union model required a substantial amount of data on the volume and structure of its international and internal trade, on tariff levels and revenues, production and investment, and contemporary national income estimates.