The Research On The Economic Effects Of China-Norway Free Trade Area

Globalization and International Regional Integration are two very important tendency of modern economy in 21st century. Especially under the background of the long-blocked WTO multilateral negotiations,a growing number of countries are trying to engage in various regional economic organizations. As a flexible form of international cooperation, FTA has made a deep influence on the economic development, international business and international investment among different countries. As the largest developing economy, China also has been seeking the opportunity to establish Free Trade Area with it's international business partners in the world. By now, China has already established FTA with more than ten countries or economics organizations. However, China has not established FTA with any developed European country. Since the Europe market is very important for China's economy, and Norway is one of the most developed, technology-advanced and rich country in Europe, it is a good opportunity for China to establish FTA with Norway., and China will definitely gain benefit from China-Norway FTA.Based on the above statement, the thesis focus on the empirical study of China-Norway FTA's economics effects, employing the combination of quantitative and qualitative analysis. In addition, the dissertation also makes some useful suggestions for the China-Norway FTA.The first chapter is the introduction of this paper, which summarizes the previous studies on the economics effects of FTA between China and it's international cooperation partners. Then the paper brings up the structure of the whole paper, introduces the creativities of this paper and illustrates the research methods that are employed in the following part. Chapter 2 is the part that summarizes the international trade theories and regional economic theories. First, it introduces the Theory of Comparative Advantage, H-O Theory and Intra-industry Theory. Furthermore, the paper introduces the Custom Union Theory and FTA Theory, and then analyzes the possible economic effects. The following chapter 3 contains the feasibility study on the establishment of China-Norway FTA. In this part, the paper employs some index such as RCA, FTD and ED to demonstrate the assumption. Also, the paper employs a model calculate the potential international business between China and Norway.Chapter 4 focuses on the static and dynamic economic effects of China-Norway FTA. This chapter first calculates the possible amount of trade creation, which is one of the most crucial static economics effects of FTA. Then the paper discusses the trade transfer effects and other possible static effects. Also, the paper discusses the possible dynamic economics effects of China-Norway FTA. Chapter5 is the countermeasures for China in the process of the establishment of China-Norway FTA. These countermeasures include: the principles that should be followed; the measures in the intentional technology cooperation and international direct investment; what China's solution to achieve the win-win situation. Chapter6 is the conclusions of the whole dissertation.In addition, the thesis makes innovations in several aspects: First, no previous study specifically studies on the economics effects of China-Norway FTA. Also, there are only a few studies on the international trade between China and Norway. The thesis not only collects many useful statistics of the two countries'international business, but also studies the economics effect of China-Norway FTA. Also, this thesis employs Gravity Model to forecast the trade potential between China and Norway. In the end, the analysis of the economic effects not only consist the static economic effects, but the dynamic economics effects, which sometimes are more important than the static effects.