The Influence Factors Of Regional Trade Development In East Asian

The intra-regional trade in east Asia has been developed very quickly since the1980s and the economics in this region has established closed trading relationship, now the intra-regional trade volume growth rate is the most rapidly developing areas in the world. But compared with the European Union and North American free trade area, the regional integration of east Asia is in a very low degree and the process of it is developing very slowly. So it is unbelievably for the intra-regional trade in this area has been got so rapidly development. Why there exist such phenomenon? And in the complicated and changeable international trade environment, how to enhance the regional competitiveness and against unfavorable factors to promote the further development of intra-regional trade?In this paper, on the base of the relevant theories of international trade, we analyze the actual situation and change of development of intra-regional trade in east Asia. To learn the influence factors of its development, we analyze the driving mechanism of economic scale, international direct investment, government policy, regional economic cooperation organization on the intra-regional trade development. We also introduced trade gravity model to test the influence factors, the sample of this paper is the ten economics in east Asia, we use the panel data of the year1995-2012.After the empirical analysis, we get the following results:first, the country's economic scale is the main driving force of intra-regional trade in east Asia, it can supply plenty of capital and broad market for the trade. Second, the difference of country's economic level is promoting the intra-industry trade in east Asia, and the effect of it is very obvious. Third, international direct investment has two effect on the internal trade development in east Asia, one is creating the trade and the other is substitution effect. Fourth, the government's policy is also promoting the intra-regional trade in east Asia. Fifth, transportation cost brought by the geographical distance is still a major obstacles to the further development of intra-regional trade in east Asia. Sixth, the financial crisis also resist the intra-regional trade in east Asia. From these results, we found that there are some problems in the process development of intra-regional trade in east Asia, such as intermediate products trading is the main trade forms, consumer goods and capital goods trade development is relatively slow, the trade creation effect of FDI is not used sufficiently, transportation cost is still the main factors that hinder trade and so on. Therefore, to ensure the further rapid development of trade in east Asia, the government of economics in east Asia should promote the economic development, expand the domestic market demand ability, strengthen the development of modern logistics and accelerate the regional financial cooperation and so on.