A Study on the Flow and Potentiality of Bilateral Agricultural Products Trade between China and ASEAN-Based on Trade Gravity Model

The trade gravity model is a vital method to do quantitative analysis on international trade. Based on traditional gravity model and combining with the actual conditions of China and ASEAN,this paper establishes the model to analyze agricultural products trade between China and ASEAN. Through empirical test,the results indicate that the main factors that have influence to bilateral trade flow are GDP,populations,space distance and trade agreements. The paper also predicts the trade potentiality,and draws the conclusion that their agricultural products trades display inadequate potential and there are huge potentialities of development. Finally,the paper proposes some relevant policy suggestions.