The Study On Trade Effects Of CAFTA

In the era of rapid development in globalization and regional cooperation, all countries, especially the developing countries, are facing the common issue of how to integrate with the world economy. The Chinese-Asean Free Trade Area (CAFTA), is the regional cooperation that China first time to attend and be dominant, whose success or failure has great bearing on the above issue. The domestic researches on the CAFTA primarily concentrate on the economic integral, peacefully rising, methods of setting up, but lack of using specific methods to study. This test make up for it.Based on the theories of International Economics, by means of qualitative and quantitative studying method, Firstly the paper applies the effect of china econmics by establishment of CAFTA.Secondly, the paper mainly focuses on the trade effect of CAFTA by means of the theory of customs union into the free trade area and use Robson's model. The effect includes the trade creating effect, trade diversing effect.then makes an analysis on dynamic effect of FTA.Thirdly, this paper studies the Work-divided by International agreement between China and Asean from the angle of comparative advantage to draw conclusions to answer such question: Dose the agreement of work-divided is feasible in the regional cooperation?At last, the author brings forward some advice on trade cooperation strategies for China and Asean. Then put aformard the direction of future study.