An Analysis On FDI Effect Of Regional Economic Integration

Today's world has entered the economic globalization and regional economic integration commonly development time, As the role of WTO is more and more important, and global free trade at the same time is more and more important, regional economic cooperation is also carried out in full swing.The European Union, the North American Free Trade Area and other major components by the developed countries of the regional economic integration organizations, although the extent of their integration of different, the important role it played on the region's economic development especially on FDI is great. Since the 90's 20th century, China and ASEAN increasingly close bilateral economic and trade exchanges, two-way direct investment flows have become increasingly active. In 2002, China and ASEAN signed the "China - ASEAN framework agreement on comprehensive cooperation", the two sides decided to go into China - ASEAN Free Trade Area in 2010.ASEAN, China has become an important foreign direct investment in the target country; At the same time, China has a number of ASEAN countries has gradually become an important source of FDI. Although the mutual investment between the late start, the potential of capital flows have not yet fully played out, but with China - ASEAN Free Trade Area of the set up and investment put into effect the provisions of China and ASEAN countries will be economic and trade exchanges closer, mutual investment will be further developed.The theory of regional economic integration direct investment includes static analysis and dynamic analysis. Analysis in this paper, based on the combination of China and ASEAN economic integration in the development of specific circumstances, an analysis of the establishment of China-ASEAN Free Trade Area of the effects of direct investment. And investment effects of investment gravity model have been tested, results showed that the establishment of the China - ASEAN Free Trade Area of the impact of FDI after the effect is not obvious. For this, the effect of the expansion of investment solutions.The article first describes the integration of regional economic effects of direct investment in theoretical foundation, pointed out that regional economic integration will have a direct investment, the impact of static and dynamic. Then the current China, direct investment in ASEAN, the analysis of the status quo, pointing out that although the scale of direct investment, but after the establishment of a free trade zone between the investment potential. Next is the effect of direct investment in the empirical analysis, the first quantitative description of China and ASEAN in recent years with the establishment of China - ASEAN free trade zone after the changes in direct investment, as well as the effect, and then gravity model with the investment of these effect of verification, the conclusions show that in China - ASEAN Free Trade Area of the direct investment of more obvious effects of economic growth, but the transfer of investment to create a particular effect is to create the effect of little effect on the market is not expanding .In light of China - ASEAN Free Trade Area of the obvious effects of direct investment, the corresponding measures in order to expand the Free Trade Area of the effects of direct investment, which in turn promote the development of Free Trade Area.