The key issue with exhaust systems is exhaust gas velocity and restrictions in the system. It's best to keep gas velocity high (smaller primary tubes) and the primary tube length (before it joins with another tube) is also a factor. The diameter and length that leads to the best gas scavenging at lower RPM will be best for a street car, but an all-out race engine that doesn't run much below 4,000 RPM will require larger/longer tubes to move the scavenging effect up to where peak power occurs.
Too small a system can cause restrictions and overheating.
A "low output", low RPM 2,110cc VW engine (say 120 BHP @ 5,500 RPM) would probably be fine with a 1 1/2" primary system and 2 1/2" muffler. A mid-range 2,110 (say 145 BHP @ 6,000 RPM) would probably require a 1 5/8" primary system with the same muffler. An all-out racing 2,110 (say 195 BHP @ 8,000 RPM) would need a 1 3/4" primary system and 3" muffler.
There is a book, "The Scientific Design of Automotive Exhaust Systems", that discusses all of the issues prettyr thoroughly. If you have the time and money trial and error will tell you what works best on your engine, or someone with a similar engine may have a system that works well and would work well for you.