A Study On The Trade Effect Of EU's Economic Integration

With the development of economic integration, the economic globalization and regional economic integration grow very fast, In the highly developed regional economical integration, European Union is one of the most successful models. To study on the European economic integration and the effect of the expansion of customs union brings to the economic and trade, makes great importance to Chinese government for making regional cooperation decision. Meanwhile, it provides some new materials to the study of international economy especially economic integration.This paper does certain research on the relationship between customs unions' expansion and foreign trade. First, it generalizes relative theories of economic integration, then on the basis of the practice of European's enlargement, this paper analyses the effect of European's eastern enlargement on Sino-EU's bilateral trade. According to the theory of Customs Union, trade-diversion effect which brought by EU's eastern enlargement would has negative effect on China's export to the EU. But the fact is not actually like this. This paper consider different possible factors, explaining the reason of this phenomenon.