The Study Of The Trade And Investment Effects Of China-Asean Free Trade Area

Since 1990 s,the regional economic integration has become more and more fierce,which has gradually become the trend of the world's economic development,and is regarded as a new power to promote economic development in most countries.While China as the largest developing country in the world,after 30 years of reform and opening up,economic strength has a considerable scale has already become a the second largest country in the world,with many countries in the world have close economic and trade cooperation.Therefore,it is very necessary to join the organization of regional economic integration,in order to maintain the foreign interests of China,and promote the sustained and rapid development of foreign economy.China-ASEAN Free Trade Area(CAFTA)is the first regional economic integration organizations which China conform to the trend of regional economic integration and formally joined,including 11 countries,nearly two billion people.It is the world's most populous free trade area,also the largest regional economic integration organizations among developing countries.China-ASEAN Free Trade Area officially completed in 2010,marking China and ASEAN countries has taken an important step on the road to liberalization of merchandise trade.In order to study the impact of such a system arrangement to the economies of China and ASEAN countries,the paper reviews the existing research on regional economic integration in the first chapter.In the second chapter,the trade effect and investment effect of regional economic integration are analyzed theoretically.In the third chapter,we firstly making a general picture of the China-ASEAN Free Trade Area,then analyzing the current status of bilateral trade and investment situation.The fourth chapter calculates the China-ASEAN revealed comparative advantage index,trade complementarity index,trade intensity index,intra-industry trade index,and FDI performance index,FDI potential index,then analyze the trade effects and investment effects of CAFTA through these indices.The fifth chapter is base on the first three chapters,through the establishment of econometric model,researching the trade and investment effects of CAFTA empirically.The sixth chapter is the part of conclusions and suggestions.Conclusion shows that China and ASEAN have a strong complementarity in the industrial structure,and reflects a certain degree of vertical division;The establishing of CAFTA bring a significant trade creation effect and trade diversion effect;CAFTA has a strong appeal to market-seeking FDI and efficiency-seeking FDI,but for resources or assets-seeking FDI,it is notappealing.Currently FDI inflows of CAFTA are still focus on Labor-intensive industries,little of FDI flow into Labor-intensive industries.In the long run,Chinese investment in ASEAN can contribute significantly to the promotion of China's trade with ASEAN.Accordingly,the paper put forward six suggests:Correctly understanding the relationship between China and ASEAN,actively promoting industrial restructuring;Further reducing trade barriers,expanding the scope of duty-free products;Taking investment as the main line,promoting all-round cooperation;Strengthening infrastructure construction,to achieve interoperability;Strengthening financial cooperation,to form the unified mechanism;With the help of the FTA upgrading negotiations and "One Belt and One Road",deepen economic and trade exchanges.