The Impact Of CAFTA On Maritime Trade Competitiveness Of Pearl River Delta

Guangdong Pearl River Delta region has been the bridge which links China and ASEAN for its geographical location and port condition. All the time it has been a process that the shipping competitiveness of Pearl River Delta and the development of maritime trade between China and ASEAN promote each other. Pearl River Delta makes full use of geographical advantages. However, there are some changes that highlights the weakness of Pearl River Delta region in the aspect of informatization construction and the level of insurance services, for example, the more strict international shipping service quality requirements, the deeper cooperation between China and ASEAN, and the challenge brought by the establishment of Shanghai FTA. So, there’s a gap between the requirement and development of the Pearl River Delta region at this stage. It will be of great strategic significance if we can make full use of promoting effect of CAFTA (China-ASEAN Free Trade Area)to further enhance maritime trade competitiveness in Pearl River Delta. It’s a problem to be solved. What influence that CAFTA brings to the international maritime trade in the Pearl River Delta area, and at which level the shipping competition is. In order to reach a convincing conclusion, this paper attempts to discuss the impact from the establishment of CAFTA to Pearl River Delta competitiveness factors, and to use Diamond Model Theory combined with empirical analysis to analyze the problems, then to put forward suggestions and measures in view of existing questions for enhance the competitiveness of the Pearl River Delta shipping trade and transportation industry.According to the Diamond Model Theory, the maritime trade competitiveness of a region should be composed of many basic influencing factors. At the same time added elements can not be ignored for it can change the overall force of basic elements of major change. This paper is based on Diamond Theory and in the reference of a large number of research literature at home and abroad. First, through the principal component analysis, the paper determines the basic influencing factors of affecting trade in maritime services in the Pearl River Delta area, and then sets CAFTA as an added factor. Through the econometric model to analysis the effect to maritime trade competitiveness. The empirical results show that the production factors and demand factors are the main factors that influence the shipping service competitiveness of the Pearl River Delta, and the establishment of CAFTA improves the whole force of these basic elements. The principal components factors change every unit, intensity is increased by 7 times. So, it’s good for Pearl River Delta to improve its competitiveness faster and better if it makes good use of CAFTA platform. This paper presents some measures and suggestions to improve the quality of infrastructure and related services industry.