Trade Effects Of CAFTA

Economic globalization and regional economic integration are the two main trend ofworld economic development,both developed countries and developing countries around the world are actively seeking bilateral or multilateral,deep economic cooperation in many areas,forming close economic trade alliance,follow the principle of complementary advantages,mutual benefit and win-win,seek multilateral mutual development.The association of south-east Asian nations(ASEAN)was established in 1967,is currently the larger organization which is given priority to political and economic cooperation in east Asia.Based on the geographical advantage of adjacent and long-term good-neighborly and friendly relationships with ASEAN,China's economic and trade cooperation with ASEAN organization progress very well.Increasingly strengthening economic ties between China and ASEAN countries,both sides in the aspects such as resource composition,industrial structure and industrial and agricultural products,have distinctive complementary advantages.So in 2002,China and ASEAN leaders unanimously passed the propose to build the China-ASEAN free trade area,namely the CAFTA,to adapt to the trend of economic globalization,cope with the challenge and promote free trade area within the common interests of all countries.Building of the China-ASEAN free trade area,can make full use of the geographical position and population advantages of the countries within the organization,to form a unified market at the most active areas in the world economy which has the most population and the biggest potential,creat the largest free trade area in developing countries.Therefore,the construction of China-ASEAN free trade area is of great significance for China and ASEAN countries and will have a significant impact on the development of the future.China as the world's largest developing country after 20 years of reform and opening up,has developed very well in building economic strength.Participate in some economic integration organizations to promote the development of foreign economic and steady is also more and more urgent and important for China.Based on the theory of customs union and free trade area,we analyze the economic effect after the establishment of China-ASEAN free trade area with the trade gravity model,and research the influence to China's economic and trade construction of the free trade area through the combination of theory and empirical,qualitative and quantitative combination of system analysis,summarize the conclusion,and propose the corresponding countermeasure according to the specific problems.In this paper,a total of six chapters,chapter below the main contents are as follows: first chapter is introduction,put forward the selected topic significance and the research background,research object and method and the article structure.The second chapter researches the related articles at home and abroad.The main content of the third chapter is about the model that is used for this article.The basic theory and solving technology of trade gravity model were reviewed.The fourth chapter analyzes the economic development of China-ASEAN free trade area and the status of the trade.The fifth chapter in detail analyze the economic development in China and ASEAN countries after the building of the ChinaASEAN free trade area with the trade gravity model.The sixth chapter carries on the summary to this research and puts forward related suggestions and prospects.