On The Economic Effects Of International Free Trade Cooperation And Its Influencing Factors

Free Trade Agreement is one of the most important and famous types of internationalcooperation. But, there are only a few Free Trade Areas(FTA) which are really effective inregional economic development. Then in theory, what are the factors influencing the TradeEffects, Investment Effects and Welfare Effects? What inspiration the existing FTAs giveus? Based on these questions, the thesis focuses on these effects and influencing factors.At first, this thesis uses a partial equilibrium model and a capital flow model of FTA toanalyze the Trade Effects, Investment Effects and Welfare Effects of FTA as well as theirinfluencing factors. Then, this thesis selected three FTAs as a sample to compare theirdifferent Trade Effects and Investment Effects. Based on this, we summarize theinfluencing factors in practice. The result shows that the Trade Effects are influenced bythe size of the internal market, industrial corelation, former duties and so on. InvestmentEffects are influenced by the member's capital adequacy, their comparative advantage,factor endowments and so on. And the FTA's common system is an important influencingfactors of the both effects.Based on these analysis, this thesis gives some advices to China about choosing FTApartners and establishing common systems.