Economic Effects Of The ASEAN Interconnection - China

China-AESEN connectivity contains three aspects: physical connectivity,institutional connectivity and people-to-people connectivity. The main part of theresearch firstly discriminated the conception of connectivity, reviewed the relatedtheory of economic growth function in the three aspects of connectivity, andsummarized the newest progress of three aspects of China-AESEN connectivity.Secondly, according to the gravity model, with the volumes of trading and investingbetween China and AESEN and the situation between China and out area countriessince the21century, the research measured the economic effects of China-AESENconnectivity by econometric method, which contained the trade creation and tradedivision effects. Thirdly, from the aspects of politics, economy and people-to-people,the research particularly analyzed the main challenges which China-AESENconnectivity faced. At last, the research proposed the related strategies from the threeaspects.The empirical results showed that the construction of China-AESEN connectivitymarkedly improved the economic and trading relations between China and AESEN.Both of the countries get more economic gains from China-AESEN region andoutside of the region. Therefore, China and AESEN ought to make greater efforts topromote the construction of China-AESEN connectivity. With the main challengesfrom the aspects of politics, economy and people-to-people, both of them have to takemeasures to deal.