2006•Journal of Guizhou College of Finance and EconomicsRequires access

A Gravity Analysis of the Effects of China-ASEAN Free Trade Area

Meng Li

Abstract

By applying gravity model and introducing appropriate dummy variables,China-ASEAN Free Trade Area(CAFTA) and Early Harvest Program(EHP),a quantitative assessment and study is made of the bilateral trade volume between China and ASEAN members.It is indicated that the establishment of China-ASEAN Free Trade Area(CAFTA) is a significant impetus to the bilateral trade among its members.

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Key concepts: China, Gravity model of trade, International free trade agreement, Trade creation, Free trade agreement, Bilateral trade, Trade volume, Free trade