THE ROLE OF FREE TRADE MEMBERSHIP IN PROMOTING EXPORTS FLOWS CASE STUDY OF ASEAN-CHINA FREE TRADE AREA

Nowadays China is considered to be the fastest growing country among the developing countries economy of the world. To get the contribution of free trade area in encouraging China’s exports that affects positively the Chinese economy, this paper investigated and analysed the volume of China’s trade in the last fifteen years (2000-2014). The aims of this study are to analyse and examine the role exports flows of China, and to examine the relationship between exports flows and free trade area agreement based on ACFTA membership of China since 2002. The exports flows from China to 200 countries are examined in order to see how more China exported to other member countries in helping this economic cooperation to achieve its objectives of promoting trade. Through the use of the gravity model and panel data techniques, it was found out that the relationship between China Exports and Gross Domestic Products of trading partners is positive with the increase in percentage of 85 percent while the Gross Domestic of China increases with 37 percent. Country’s export sector is a very important factor in its economic development especially in developing countries.