An Empirical Study On The Economic Effect Of China's Foreign Free Trade Agreements

Under the trend of regional economic integration,the role of the multilateral trading system in economic globalization is weakening.Between countries and countries are actively through the signing of free trade agreements,the establishment of free trade zones and other arrangements to deal with complex and volatile global situation and international trade environment.In the context of the slowdown in global economic growth,the growth rate of international trade for five consecutive years is lower than the global economic growth,which means that the development of international trade is facing serious challenges.The world has indeed entered the bilateral,multilateral,regional close cooperation period,but for the time being international form of our country is still beneficial.As of March 2017,China signed 14 free trade agreements with different economies.It is precisely because the construction of China's free trade zone started late,but should seize this historical opportunity,in addition to consider some political factors,but also actively promote China and other major trade countries FTA signed between.The current advancement of the FTA can be combined with "taking the way along the way" to promote economic exchanges with the country along the road,and to accelerate the promotion of China and resource-rich countries or economies signed FTA.From a theoretical point of view,the signing of free trade agreements has a positive effect on trade growth.To study the economic effects of China's free trade area,more is to know whether China has signed a free trade agreement has played a practical role in promoting economic growth.In this paper,through empirical research,it is concluded that the impact of FTA's signing on China's economic effect is not significant.Through the following three factors to explain:First,the signing of the FTA are smaller economies,trade volume is not enough to affect the overall situation,such as Iceland,Switzerland;Second,many agreements signed soon,FTA policy has not yet reflected;Third,China is currently signed FTA more from a political point of view,such as China and Pakistan.So far,there is no article through the expansion of the fixed effect of gravitational model to all aspects of China has signed an effective effect of all the FTA,the existing comprehensive research or the use of panel data mixed regression study.Most of the articles use the gravitational model to study the factors that affect the economic effects of the trade area,rather than studying the role of FTA itself in trade and economic growth.Finally,many of the foreign literature through the study of the North American Free Trade Area,ASEAN and other economies between the trade relations,that FTA can significantly promote trade growth and thus affect economic growth.Taking into account the particularity of China's political economy,so far has been signed into the effective FTA can not significantly promote the increase in trade is very worthy of a special list of research and analysis.