Analysis on China-ASEAN Free Trade Area by Gravity Model

This paper analyzed the relationship between China and ASEAN free trade area by gravity model. Regression outputs show it is effective to apply gravity model in China and ASEAN. The basic factors that influence trade between China and ASEAN countries are GDP of each country, GDP per capita of each country, and distance between two countries. According to the specific condition between China and ASEAN countries, this paper put more variance like Chinese population in each ASEAN countries, and FDI inflow. They are effective to analyze the trade between China and ASEAN countries.