Development Of Bilateral Trade Between Yunnan And Asean After The Financial Crisis

ASEAN (the Association of Southeast Asian Nations)has always been one of the most important trade partner of Yunnan Province. They have great potential for trade. January 1, 2010 China ASEAN Free Trade Area (CAFTA) was established formally, which marks the 10-member association of China and composed of close to $6 trillion GDP 4.5 trillion dollars trade area into the zero tariff area.Yunnan Province is located in the southeast border of China; it has the great advantages in communicate with neighboring country both in economics and trade. Although the global financial crisis is fading away, the impact brought on the financial crisis is not ended, particular for developing countries. Global trade is showing the negative growth and Yunnan ASEAN trade is no exception. The article uses the theory of Western Economics and International Trade to analysis the cause and transmission mechanism of financial crisis. Then we can find out how the financial crisis influences the import and export trade of Yunnan-ASEAN. The article collects the data of Yunnan-ASEAN from 2001 to 2010 to set up the regression model. From the result of regression model we can find out the relationship between GDP of Yunnan Province and the mount of trade. The conclusion is expansion of domestic demand is the most effective methods to Enhance economic development in Yunnan. In order to study the factors will impact the trade between Yunnan and ASEAN, the article use trade gravity model. Calculated by statistical software, we can obtain the existing trade level of development between Yunnan and ASEAN. The conclusion offers the effective suggestions for the future bilateral trade. First of all, we should increase financial supports for real economy and promote RMB regionalization. Secondly, use the foreign capital to promote industrial upgrading. Thirdly, strengthen cooperation with domestic provinces to improve the development of economy.The whole article is divided into six parts. The first chapter is the introduction of the question we will research. In the second chapter, the theory of financial crisis, international trade and Regional economic integration is reviewed. In the third chapter, we analyze the impact brought by financial crisis on trade between Yunnan and ASEAN qualitatively. In the fourth chapter, we set up the linear regression model and gravity model to find the factors which will influence the trade. In the fifth chapter, we list the challenges of the trade between Yunnan and ASEAN and offer some relevant recommendations according to the result of analysis above. The last chapter is the conclusion of the whole article.