Trade Creation and Diversion of China-ASEAN Free Trade Area--based on Balassian Model

摘要

In order to analyze the trade effects of China-ASEAN Free Trade Area on China's import,this paper uses modified Balassian model to measure the trade creation and trade diversion. OLS and Chow test for structural change across time are employed. The result is that there is evidence of trade creation of CAFTA on China's import and no evidence of trade diversion on China's import from extra-region.