Based on Gravity Model to Analysis on Trade of the China-Pakistan Free Trade Area

It is another major attempt for China to establish a free trade area with Pakistan in recent regional economic cooperation.Based on Gravity Model,this paper made an empirical analysis on the trade factors affecting both sides volume of China and Pakisan,and estimated Chinese and Pakistan's trade potential,then came to the conclusion that the establishment of FTA can better promote the cooperation of economical trade,and the degree of dependency between the two countries will be promoted.The bilateral trade potential between both countries is not fully developed yet,and also has certain expansion bilateral trade space.All of these show that in the economic globalization and under the regional economies integration's background,it is of great significance for China and Pakistan to sign FTA.