Research On Actual Economic Effects And Development Trend Of Cafta

With the development of economic globalization and constantly integration of theworld market, in order to gain greater benefits and competitive advantages, all thecountries or regions from all over the world have to participate or organize the regionaleconomic integration, and our country is complied with the development trend. CAFTAwas established in January.1st,2010, which is the largest integration organization thatmade of developing countries. At the same time CAFTA is the third integration of regionaleconomy cooperation organization after EU and NAFTA.There is an enormous effect on politics and culture of the members, but the economicis more obvious after the establishment of CAFTA. As the benefit is the base of thisorganization, so this paper pays more attention to economic effect.Now there are so many papers about analyzing effects, so firstly the paper cleans upthe detailed information for reference. Based on some theories of regional economyintegration, the paper then analyses static effect and dynamic effect of CAFTA. This paperconcludes that CAFTA promotes the trade expansion effect, scale economy effect, theinvestment and compelition effect. Also some problems should not be ignored. Tradestructure is close between members after trade reforming analysis, and need to improveindustrial structure, optimize the allocation of resources. By using gravity model the paperanalyses trade flow between members, and found that GDP of those members promotestrade development, but the distance between countries has negative effects, the populationand area of countries could be ignored. Finaly, some strategies are given after theestablishment of CAFTA, and analyzes the results and problems of10+3cooperation.