A Study On The Effects Of China And ASEAN Trade Cooperation

As for China-ASEAN Free Trade Area (simplied as CAFTA), it is the first systematic and close regional economy integration organization that China joined formally. Meanwhile, it is the third largest trade market, which is centered on the developing countries and only inferior to that of North America. However, among the international academe, much practical experience and studies on the integration theory of regional economy have generally shown that they didn't succeed for the developing countries. And it is the first attempts for China during the integration of regional economy. So, it is worthy of concerning and exploring what will be the effects of China and ASEAN regional trade cooperation. Focused on it, many topics need further discussing which are as follows: firstly, whether the CAFTA, viz. south-south regional group mainly comprised of developing countries have the succeeding qualification or not; secondly, leading influential factors upon the trade cooperation; lastly, the effectiveness of trade cooperation.Based on the theories of international economics, by means of qualitative and quantitative studying method, this paper mainly focuses on the trade effect of CAFTA. Furthermore, in combination with available method related to econometrics and in the framework of trade cooperation of China and ASEAN, that whether the trade reality of both sides may have the qualification of bringing positive effects on regional trade was explored. And primary factors influencing the trade cooperation were further identified.For the goals as expected, first of all, the reality basis of CAFTA was analyzed and founded. And with the help of available statistical data, the dimensions, status and the developing potential of trade together with the bilateral commodity structure were analyzed explicitly.Next, those factors influencing upon the creative effect of regional trade and the degree of trade transfer were investigated according to the integration theory of regional economy and the mechanism of building up free-trade area.In the end, the analytic framework was constructed in virtue of Trade Gravity Model that has been improved during the trade cooperation of China and ASEAN. Besides, the...