The Effect Of CAFTA On Logistics Development Of GuangXi

Constructing of CAFTA brought Guangxi a new historical opportunity ofdevelopment, which is situated in the center of china and the economic cycle ofAssociation of Southeast Asian nations. Following the advance of the process of tradeliberalization, the cost of bilateral trade transaction will be reduced by a large degree,which results the great rise of the bilateral trade volume.This essay is on the effect of CAFTA on the development of logistics in Guangxi,which is analyzed on two sides. On the one hand, we construct a model to analyze theeffect of the increase of the bilateral trade volume on logistics of Guangxi byintroducing two variables:the trade volume between Guangxi and CAFTA and thevolume of transported goods. On the other hand, we explain the needed improvementof infrastructure, especially the railroad and the water transportation in Guangxi andput forward the corresponding proposals by analyzing the effect of bilateral tradestructure on the transportation infrastructure of Guangxi on the basis of the growthdemand of logistics.