The Impact of ACFTA on People's Republic of China-ASEAN Trade

Publication | July 2012

This paper uses an extended gravity model to shed light on the impact of the free trade area agreement between the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China (PRC) on the members' trade flows and trade patterns. Results from the extended gravity model show that the free trade agreement leads to substantially higher bilateral trade between ASEAN and the People's Republic of China, more than what a conventional gravity model predicts.

Contents 

  • Abstract
  • Introduction
  • Trade Between the PRC and ASEAN: Some Stylized Facts
  • Brief Literature Review
  • The Estimation Strategy: Concept, Methodology, and Data
  • Results
  • Conclusions
  • References
  • Appendixes