The Research Of Economic Effect Of North American Free Trade Area

North American Free Trade Area (NAFTA) has established20years, the benefits of economy have been proved obviously, whether the developed country-United States, Canada, or the developing country-Mexico of NAFTA has gained considerable benefits. The trade-volume among the three countries has increased rapidly since NAFTA established, and the total trade-turnover among the three countries was306billion dollars in1993.while the trade-turnover was918billion dollars, three times as that of1993.From1993to2000after NAFTA was established, Canada’s employment has grew by16%, and that of U.S. was12%, and that of Mexico was28%, the unemployment rate of that continues has been descending among that period. The trade-turnover between China and Japan was301.856billion dollars in2010,it is the first time the total trade-turnover between this two countries, and China has become the largest importer and importer of Japan. While the total trade-turnover between China and South Korea had increased by200billion dollars in advance, and China is also the largest exporter and trading partner. Setting up Free Trade Area of China, Japan and South Korea like NAFTA, that is contribute to promote the collaboration of Northeast Asia region, and it is significant that strengthen the important position of the world economy of the three countries. NAFTA and Free Trade Area of China, Japan and South Korea have several similar elements, such as geographical location, economic development level, the country’s social system. Therefore, make a further study of the economic effect of NAFTA has an important guiding significance of the construction of Free Trade Area of China, Japan and South Korea.The contents of this article were divided into five chapters:The first chapter is introduction, the content including research significance, the domestic and foreign research about the economic effect of NAFTA; The second chapter is about the present situation of development and causes of establishment of NAFTA. First, analyze the theoretical foundation of NAFTA. Secondary, analyze from the political needs and economic development factors the cause of establishment of NAFTA from the political needs and economic development factors. Finally introduced the present development of the three countries of NAFTA.The third chapter mainly introduce the of economic effect of NAFTA. The first part combines the structure model of theory and the empirical analysis method to analyze of the dynamic economic effect of trade creation and trade diversion of NAFTA; the second part includes the creation and transfer effect of FDI, economic competition, economies of scale of the NAFTA, the third part from the factors of national income, employment and consumer, analyzing the welfare effects of NAFTA. The fourth chapter adopted the principle of comparative economics, analyzing the operation characteristics and the economic policy effect of organization between NAFTA and EU.The fifth chapter mainly introduced the present trade-development of China, South Korea and Japan trade development, and put forward the opinions about quickly setting up the Free Trade Area of China, Japan and South Korea.