A Research On Mechanical And Electrical Products Trade Effects Of China And ASEAN

Recent years,with the the cooperation of China and ASEAN Constantly deepening,the trade and economic developed at the same time which bring large foundation of trust of the governments.“The Silk Road Economic Belt and the21st-Century Maritime Silk Road”and the upgrade version of FTA bring new energy for both of them.Especially when CAFTA established in 2010,mechanical and electrical products of China and ASEAN increased a lot and be the important part of the content.For now on,China propose“the Silk Road Economic Belt and the21st-Century Maritime Silk Road” will doubtlessly promote the trade for both sides.The article use RCA,TC,G-L TCI index firstly to analysis the shape and status of China and ASEAN.Then we use CMS model to analysis three important factor as demand,structure and competitive power do with the increasing of the trade.We can discover that structure factor is not big enough to do with the development of the trade.The reason is that mechanical and electrical products have not been optimized which needs a process of optimization.Finally,we use trade proportion method and Lhasa trade model.To establish different dummy variables to analysis trade effect of CAFTA.The result can be show that CAFTA can increase the trade flow of mechanical and electrical products in the zone which produce trade creation effect.The CAFTA and“the Silk Road Economic Belt and the 21st-Century Maritime Silk Road”advance the trade creation effect.To enlarge the trade creation effect,China and ASEAN can do with two hands.On the one hand,we can grasp the large opportunity of CAFTA.On the other hand,CAFTA should use their resource properly to promote trade of mechanical and electrical products developed steadily and healthily.