Analysis Of The Economic Effects Of China-New Zealand Free Trade Area

An active part in international process of regional economic integration has become China's another important aspect linking with world economy. In recent years, as rapid economic development,China needs Oceania countries as it's trading partner in all aspects. On April 7th,2008, China and New Zealand signs the "People's Republic of China Government And New Zealand Government Free trade Agreement". The two countries are far apart geographically, and their economic size and level of economic development are also significant differences. Establishing such integration comprising countries of different location is a meaningful attempt for China. What economic effects will be happened by the China-New Zealand FTA,and whether it promote economicdevelopment in both countries? This paper is to specifically solve the question. This paper,first,introduces the theories and demonstration models that are used to analyses free-trade area,and summarizes the researches on economic effects of China-New Zealand Free Trade Area.Then, analyzes China and New Zealand's economic cooperations in the fields of trade and investment. Based on the original trade data in the last 20 years, this paper also analyzes the two countrys' comparative advantages and competitive advantages of the 0-8 kind of products. The result indicates that China-New Zealand FTA is to be established on the good economic and trade relations and strong complementary industrial structures,and the two sides have profound economic foundation for establishing FTA.Thirdly, applying trade gravity model, this paper makes analysis of the main factors that impact bilateral trade,and predict the potential for trade.then, analyzes China-New Zealand FTA's static effects and dynamic effects, including trade effects, welfare effects, investment effects.the result indicates that the economic impact on New Zealand are greater than that on China, and the FTA's static welfare effect is more obvious than the dynamic welfare effect.At last, this paper disscusses the limiting factors in the founding of China-New Zealand FTA, and the policy choise China should make,then give some suggestions expanding economic and trade cooperation between China and New Zealand in the framework of a free trade agreement...