Affiliations: College of Economics and Management, China Agricultural University, Beijing, China
Correspondence:
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Corresponding author. Han Jie, College of Economics and Management, China Agricultural University, Beijing, China. E-mail: hanjie8906@163.com
Abstract: Based on the gravity model of trade, this paper studies the trade creation effect of China-Asean free trade area. 23 trading countries in North America, South America, Asia, Europe and Oceania are selected as samples. Construct the trade gravity model of China-Asean free trade area and make the empirical analysis. The increase of GDP in trading countries will promote the growth of trade flow. Secondly, CAFTA will increase trade volume, but the effect is not significant. In addition, geographical distance has a negative impact on the increase of trade flows. In order to promote the trade development of China-Asean free trade area, differentiated cooperation is needed. It needs to carry out sub-regional cooperation with CAFTA and promote trade cooperation with One Belt and One Road.
