Economic Effects Of China's Direct Investment In ASEAN Framework Under CAFTA

Since the "10+1" China--ASEAN Free Trade Area (China-ASEAN Free Trade Area, hereinafter referred to as CAFTA) establishment, especially the "China ASEAN Free Trade Area Investment Agreement" signed, The CAFTA was established to further promote the area of foreign direct investment (Foreign Direct Investment, hereinafter referred to as FDI) development. Among them, China’s direct investment in ASEAN countries continues to expand the scale, FDI inflows to the region economy fast development, the optimization of the industrial structure, and has important economic and political significance to improve members’ economic efficiency and opening ability.Economic effect of foreign direct investment has been extensively studied. Therefore, this study based on the previous theoretical basis, research of the effect in China’s direct investment to ASEAN under the framework of CAFTA. First, from the three points that were scale of investment, industrial distribution, composition of the country of China’s direct investment in ASEAN’s development present situation, and the investment motivation; secondly, the relevant data of national investment in China and based on the establishment of ASEAN, dynamic panel data model, the system of generalized matrix analysis of empirical research on the investment diversion effect, growth effect is quantitatively estimated; finally, as the ASEAN countries of research object, studies the Chinese direct investment in ASEAN countries industrial optimization effect by using gray correlation analysis method.According to this frame, this paper studies that:First, China’s direct investment in ASEAN countries have to meet the various investment motivations. Market oriented motivations, resources oriented motivation, motivation, trade driven China’s own development and policy driving motivation.Second, China’s direct investment in ASEAN affects the construction of regional economic integration. China’s direct investment in ASEAN has obvious investment creation and diversion effect, regional economic integration has promoted Chinese direct investment in ASEAN countries; at the same time, China’s direct investment in ASEAN countries will deepen regional economic cooperation and promote regional economic integration process.Third, Chinese direct investment in ASEAN countries with strongly economic growth effect. Regional FDI inflow has greatly promoted economic growth in ASEAN countries, deepen regional economic cooperation.Fourth, overall, China’s direct investment in ASEAN countries has a promoting effect to ASEAN countries’ economic growth, it has obvious effect on promoting the industrial optimization in ASEAN countries. Chinese investment in Singapore the tertiary industry promote the optimization of industrial structure; the second level of the national Philippines, Malaysia, Thailand, ASEAN, direct investment in second industries to promote the optimization of industrial structure; for the third tier of the ASEAN countries, Indonesia and Vietnam, China to promote the industrial structure optimization and investment in second, the three industry; fourth levels of the ASEAN countries, is a typical agricultural country, China has the direct investment industrial structure optimization effect obviously.