publication . Bachelor thesis . 2011

ASEAN - China Free Trade Area : A quantitative study of Trade diversion and Trade creation effects on ASEAN - China trade flows

Duong Xuan, Vinh;
Open Access English
  • Published: 01 Jan 2011
  • Publisher: Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Economics, Finance and Statistics
  • Country: Sweden
Abstract
The Association of South-East Asian Nations (ASEAN) and China have a long history of trading with each other. They are economic partners as well as competitors for many years. In order to push their economic relationship to a higher level, in November 2002, ASEAN and China signed the initial framework agreement, determined on establishing the ASEAN - China Free Trade Area (ACFTA) among the eleven countries by 2010 for the ASEAN-6 (Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand) and by 2015 for the transitional economies of Cambodia, Laos, Myanmar and Vietnam (the CLMV). There are fears that China’s rapid development recently will encourage ASEAN’s...
Subjects
free text keywords: ASEAN – China Free Trade Area, regional trade, trade liberalization, economic integration, trade creation, trade diversion, Economics, Nationalekonomi
Related Organizations

Background .......................................................................... 3 2.1 Association of South-East Asian Nations (ASEAN) ....................... 3 2.2 ASEAN - China Free Trade Area (ACFTA) .................................. 3 2.3 ASEAN - China trade interactions ................................................ 4 Trade interactions with the ASEAN-5 economies .......................... 4 Trade interactions with the newer ASEAN economies .................. 5 2.4 China's development and concerns over ACFTA .......................... 6 Theoretical Framework ...................................................... 10 4.1 Free Trade Agreement ................................................................ 10 4.2 Trade Creation and Trade Diversion ........................................... 10 4.3 Viner's Model of a Free Trade Agreement .................................. 11 Empirical Framework ......................................................... 13 5.1 Theoretical foundation of the Gravity Model ................................ 13 5.2 Variables and Data construction ................................................. 13 5.3 Augmented Gravity Models ......................................................... 15 5.4 Descriptive Statistics and Data sources ...................................... 17

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