Research On Economic Effects Of China Participating In The Central Asia Regional Economic Cooperation

With the booming of the global economic integration, it makes countries in the world more open and more active to join the process of the trend. Due to the limitation of the WTO multilateral trading system, together with the fail of the multilateral trade negotiations and the rise of trade protectionism, these factors strengthen the development of the global economic integration.In order to adapt to the new form of economic globalization, the eighteen Party Congress report stressed that our country should open up and make overall plans in the bilateral, multilateral and regional cooperation. As the same time, promote the interconnection with neighboring countries and strive to benefit them through our own development. A new round of the western development drive, with the rise of economic belt "silk road", has brought unprecedented opportunities for the regional economic cooperation and China’s participation in the Central Asia regional economic cooperation is in accordance with the trend of world economic development. China should carry out the regional trade and economic cooperation by its unique geographical advantages.China cooperates with Central Asian countries based on two frameworks —“Shanghai Cooperation Organization(SCO)” and “Central Asia Regional Economic Cooperation(CAREC)”. How to measure the economic effect from trade and investment between China and Central Asian countries? How to deepen regional economic cooperation? This article draws on the customs union theory testing and analysis of economic effects of China and Central Asia Regional Economic Cooperation.In this paper, firstly, it reviews the course of China’s economic cooperation with central Asian countries on the basis of summarizing the predecessors’ research results. And it expounds the status of trade and investment between China and central Asian countries. Secondly, it makes a quantitative analysis on trade effect of China’s participation in the central Asia regional economic cooperation by using the gravity model, at the same time, has carried on the qualitative analysis for the investment effect. Again, it analyzes and researches the problems existing in China’s participation in the central Asia regional economic cooperation as well as the restricting factors. Finally, aiming at specific problems puts forward some countermeasures and suggestions of deepening China’s participation in the central Asia regional economic cooperation.The study has two conclusions. One is that China and Central Asia Regional Economic Cooperation will be a positive effect of trade creation, but the trade diversion effect is not obvious; Another is that China’s investment in the creation and investment diversion effects of the Central Asian countries are relatively obvious. Therefore, China and Central Asian countries to achieve deeper economic cooperation, we need from the multi-level perspective to deal with existing problems. First of all, in the national macro level, it should grasp good opportunities of economic belt "silk road", improve the regional trade and investment facilitation, and the Eurasian economic alliance partner relationship; Secondly, in the autonomous region level, the Xinjiang not only to adjust the local industrial structure, but also increase support for local products, to foster a group of enterprises; Finally, in the aspect of micro enterprises, it should encourage enterprises to "go out" to the west, and to enhance the credibility of Chinese products in the central Asian countries, to promote China’s more long more in-depth economic and trade cooperation with central Asian countries.