Research On The Trade Effect Of China-Georgia Free Trade Area

Since the establishment of diplomatic ties,in the case of the two countries have always maintained a stable,good diplomatic relations,in the case of trade in the context of the rapid development,a large number of such as hualing group company established in Georgia as investment,the ground to take root,the rising trade and investment between the two countries.In December 2014,when the political bureau of the CPC central collective learning # 19,general secretary of xi jinping,radiation surrounding the proposed to build step by step based on all the way "area",for the global free trade area of the network.This is the first time since the "One Belt And One Road" initiative was proposed in 2013 that China has combined the construction of free trade area with the concept of " the Belt and Road Initiative".This major deployment coincided with Georgia's strategy of building an "international great channel" over the years,and was quickly echoed by the Georgian government.In May 2017,after nearly two years of negotiations,the two sides officially signed the free trade agreement between the government of the People's Republic of China and the government of Georgia.This paper first introduces the development background of world trade and the trade status of China and Georgia,and analyzes the status of bilateral foreign trade in the domestic economic system.Through the integrated use of dominant comparative advantage index,trade,trade complementarity index analysis and evaluation is commonly used means such as spent on bilateral trade complementary trade competitive with quantitative analysis,by using the gravity model of bilateral free trade area to establish one of the main factors and establish a free trade zone development potential analysis and forecast,through data analysis on the existing two countries future free trade area of the management and advice are put forward.Through the analysis found that the two countries on the trade structure has strong complementarity,and on the competitive advantage industry because do not overlap between the two countries,both sides less competitive in the international market,and through the empirical analysis,the factors affecting trade flows main gross national product(GNP)for each other,geographic distance,such as whether a free trade agreement,according to the trade potential analysis in the case before a free trade agreement between the two countries,bilateral trade development smoothly,belong to the potential pioneering,has the very big development space,it provides the two countries signed a free trade agreement,and provides Suggestions for the free trade area.