Factors That Influence The Development And Bilateral Trade With ASEAN

China and ASEAN bilateral effect has been gradually revealed since theestablishment of China-ASEAN Free Trade Area.China has become the largest tradingpartner of ASEAN, and ASEAN has become China’s third largest tradingpartner.Chongqing and ASEAN increasingly close in economic and trade,ASEAN hasbecome the largest trading partner of Chongqing.Chongqing as the role of central cityin Southwest of China is increasingly prominent. CAFTA gets into the second stage ofdevelopment from2011to2015.According to "China-ASEAN Framework Agreementon Comprehensive Economic Cooperation" provisions of tariff reduction schedule,themost tariff of goods between China and ASEAN members will be further cut,whichwill bring broader space for bilateral cooperation.The paper tries to make researchesinto the trade decelopment and factors on bilateral trade using theoretical and practicalanalysis,which has guiding significance for us to make the correct foreign trade policy.Firstly, the paper introduces the basic theory of the regional division of labortheory,the theory of regional economic integration and the new economicgeography.Then,uses the descriptive statistical analysis method to summarizeChongqing and ASEAN bilateral trade situation from the trade scale,the countryconstitute and the commodity composition.The paper researches the factors on bilateraltrade on this basis.Chongqing and ASEAN bilateral trade affected by many factors,such as tax policy, economic resources, transportation,political and cultural differencesand so on.The gravity model which is established using2000-2011panel date of tencountries in ASEAN and Chongqing is used in analyzing the factors on bilateral trade.The result of this research shows that the distance of Chongqing and ASEAN is stillthe major factor which affects the bilateral trade.There is still a large trade potentialthat can be realized.Finally,Chongqing should adjust industrial structure and tradestructure,strengthen regional cooperation,and participate in the construction ofsub-regional collaboration,speed up the construction process of the national seachannel and give full play to the government’s performance according to the results.