The Influence Study Of CAFTA On Hunan Export-oriented Agricultural Development

Nowadays, the regional economy integration has become an inevitable trend of world economic development. The establishment of CAFTA brought unprecedented opportunities and challenges to the development of Hunan export-oriented agriculture. This paper studies the influence of CAFTA establishment from provincial level by using linear regression model and analyses the influence of these two variables’ variations on that of agricultural economic development in Hunan from the angle of ASEAN foreign direct investment. Judging from the analysis results, import and export trade of ASEAN&Hunan will directly affect the agricultural economic growth of Hunan province, including every increase of0.807786%in it and Hunan agricultural output will increase1%. The linear relationship between ASEAN foreign direct investment in Hunan province and Hunan agricultural economic growth indicates that ASEAN foreign direct investment in Hunan province doesn’t play a significant role in Hunan agricultural economic growth, so it can be neglected.In order to deal with the challenges of CAFTA to Hunan agricultural economic development, Hunan province should improve the investment environment and investment promotion to further expand the scale of agricultural trade, greatly cultivate agricultural industry leading enterprises and establish industry association and rural cooperative organization, improve product quality and promote the agricultural standardization.