The Effect Analysis And Prediction Of Establishing Free Trade Zone Across The Straits

With the development of globalization of economy,the tide of regional economic integration also spread to the whole world, which makes deep impact to not only the whole-world economic structure but also regional economy.In recent years,the scale of cross-straits trade and investment increase largely, particularly after both sides accede to WTO,the economic and trade relationship become closer. Obey to international economic tide, mend the economic cooperation of cross-straits,establish the cross-straits free trade area, those are the best outlet of labor division,obtain the best assignment of resource and competitive advantage after both entry of WTO.The establishment of the cross-straits free trade area can force the production factor flow bidirectional; accelerate the formation of mutually communication and harmony of industrial complementary and labor division.Therefore,the research of the economic cooperation relation of the cross-straits is always the hotspot in academe,also is the unenviable problem in process of uniform undertaking in the future. One the basis of foregoing study result,use the economics theories,combine the economic situation in contemporary world, especially the new trend of the cross-strait economic and trade development that the two sides entry into WTO,analyze a problem of set up the cross-straits free trade area by dialectical thinking.The keystone lie in:first,comprehensive discuss and generalize the trade gravitation model, summarize the study result and shortage of home and abroad ;secondly analysis the possibility of establishment the cross-straits free trade area, emphasize as to it's estimate analysis after its establishment,lastly use the PANEL DATA method,checked-up the relationship of two sides trade quantity and the economic scale,citizen's income level, space of the cross-straits to be apart from,at the same time, put forward the policy suggestion of establishment the cross-straits free trade area, and carried on the discussion of the direction of the further work. The purpose of the research lie in, take the cross-straits as a whole to investigate, in order to post the inside contact and mutually complementary relation of the cross-straits economy, explore the possible mode and path of the establishment ofcross-straits free trade area.