THE EFFECTS OF ASEAN-CHINA FREE TRADE AGREEMENT ON BILATERAL TRADES
This article adopts the augmented versions of the Gravity Model to examine the effects of the signing of the ASEAN-China Free Trade Agreement (ACFTA) on the bilateral aggregate trades. Specifically, ACFTA dummy variables are incorporated in the basic model is to estimate the direction and magnitud...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
SOUTHWEST JIAOTONG UNIVERSITY
2021
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/35285/3/abstract.pdf http://ir.unimas.my/id/eprint/35285/ http://jsju.org/index.php/journal/article/view/847/840 |
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| Summary: | This article adopts the augmented versions of the Gravity Model to examine the effects of the signing
of the ASEAN-China Free Trade Agreement (ACFTA) on the bilateral aggregate trades. Specifically,
ACFTA dummy variables are incorporated in the basic model is to estimate the direction and magnitude
of the ACFTA effects. A total of 79 trading partners of ASEAN member countries plus China were
examined in this article. The study finds that the Gross Domestic Product, population, natural
endowment, distance, and common language are the main determining factors of the bilateral trade for
ASEAN member countries and their trading partners. Estimated results from this Augmented Gravity
Model showed that ACFTA had increased the bilateral aggregate trades not only between intra-bloc
member countries but also intra-bloc and extra-bloc countries. With this positive finding, ASEAN and
China could consider expanding their free trade area to a broader regional perspective, enhancing
economic growth and reducing regional inequality. |
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