Research On Trade Effect Of ASEAN-China Free Trade Area

With the rapid development of the regional economic integration, the world economic openness is greatly increased. On January1,2010, China-ASENA Free Trade Area was established on schedule. This is the first free trade zone that China participated in and played leading role in. This significant event is the milestone of the China-ASENA cooperation. The first time the idea of China-ASEAN free trade area was proposed, it already became the focus of theoretical circle and a hot issue in economic research. The economic and trade ties between the two sides has entered a new stage. Since the free trade zone was built, the value of trade is keep growing. As the China-ASEAN Free Trade Area is still in the early stage of construction and development, it has many problems needing to be solved.This essay combed theories and statics analysis to study the current and future development situation. This paper expounds the China ASEAN Free Trade Area based on the background and content research. Through the analysis on the historical reasons for the formation of CAFTA and the analysis on the realistic condition, compared to NAFTA (North American Free Trade Area), to discuss the main policy and characteristics of CAFTA. The second part of this essay uses RCA index, trade integration index, trade complementarity index, intra-industry trade index to study the static and dynamic effects of CAFTA, deeming the complementary degree of CAFTA plays a crucial role in trade creation effect. Through analysis, this paper holds that to establish the CAFTA is a reciprocity and mutual benefit policy decision, it has a broad development prospects. At last, according to the data research in this paper, the author gives some policy suggestions on CAFTA’s construction process.