China And Asean Trade In Goods Border Effect Analysis

"Border Effect" of trading means the effect of border on cross-border trading behavior, and this effect indicates the difference between the trade amounts with and without a national border after controlling some independent variables we choose. The border effect includes all the resistant factors which we aren’t considering about to the international trade between two countries related to the national border. Papers in this field mainly controlled indicators, such as two countries’GDPs, distance between them, income per capita, language, adjacent etc., which are part of the whole trade resistance. Of course there are lots of other factors of trade resistance that are not easy to control in our studies, for example information costs and national characters of products, so those factors not considered are brought into the study of problem of border effect.Main work and structure of this paper:The first chapter gives the research background and meaning. The second chapter introduces the situation of trade between China and ASEAN. The third chapter is the literature reviews of gravity model. The fourth chapter analyses the border effect between China and ASEAN using gravity model. The fifth chapter analyses the econometric results of border effects between China and ASEAN, Japan and ASEAN, Korea and ASEAN. The last chapter is summary.Innovation of this paper:1) compare among some kinds of econometric model of gravity model, give the best econometric model according to the heterogeneity;2) divide the trade border effect between ASEAN and China into two stages;3) add multilateral resistance, eliminate the country related individual trade resistance.Shortage of this pager:research in this paper does not involve the analysis of mesoeconomic and microeconomic data, but mainly in national macroeconomic level. It’s hard to explain the changes of border effect in macro level because the factors affect them are complicated.