Study On The Economic Effects Of The China-new Zealand Free Trade Area

China-New Zealand FTA is not only an significant practice of China's free trade area strategy,but also an important part of China's free trade network in the world,creating a precedent for the establishment of an FTA between China and developed countries.Trade commodities between China and New Zealand is highly complementary,after eight years of development,China has become New Zealand's largest export market and import source.The total trade flows of bilateral trade in goods and services has tripled and doubled respectively.Moreover,China's outward direct investment flows in New Zealand increased by 50 times.On the basis of summarizing the relevant theories and literatures about FTA,this paper analyzes the bilateral trade effect,the investment effect,the financial cooperation and natural person movement since the FTA was established.In the analysis of the commodity trade effect,by introducing Balassa model,this paper empirically analyzes the FTA coverage rate and trade specialization coefficient based on the commodity structure,and then by comparing elasticity of import demand before and after the establishment of China-New Zealand FTA,this paper analyzes the increase and fall of intra-area and extra-area imports,thus reflecting trade creation and trade diversion effect of FTA.The results show that China's trade creation effect is greater than the trade diversion effect,while New Zealand's trade creation effect is negative for the moment.This paper uses the trade weight method to further explain the regression results of the Balassa model,and analyzes the causes of results in other aspects.This paper also uses the gravity model to illustrate that FTA has a positive effect on bilateral trade flows between China and developed countries?This paper analyzes the investment effect,including investment scale and field in the past eight years.In order to further promote the development of financial services,bilateral financial cooperation has been reinforced,what's more,due to the advantages of tourism industry,high-quality education and environment,China-New Zealand FTA has bring more population flow compared with the past.In addition,the signing of the China-New Zealand FTA promotes China to cooperate with other developed countries under the framework of FTA,resulting in a significant demonstration effect.China and New Zealand FTA is of great significance,in view of the achievements and shortcomings of the China-New Zealand FTA in the past eight years,corresponding countermeasures and suggestions have been put forward to promote the development of bilateral trade and investment under the new FTA in the context of the China-New Zealand FTA upgrade negotiations,based on which we can strengthen FTA negotiations with other developed countries.