China-ASEAN Trade Pact Boosts Economic Growth, Reshapes Regional Dynamics
The researchers examined how creating a free trade area between China and ASEAN countries impacted trade using a model called the gravity model. They studied 23 countries and found that when the GDP of these nations grows, trade flow also increases. The creation of the China-ASEAN Free Trade Area led to some increase in trade volume, but it wasn't very significant. The distance between countries has a negative effect on trade growth. To boost trade in the region, different types of cooperation are necessary. More focused collaboration within the free trade area and enhanced trade partnerships with the One Belt, One Road initiative could help.