Impact of ASEAN- China Free Trade Area (ACFTA) on China-Malaysia Trade Flow
The establishment of ACFTA is believed to be able to foster closer trade relationship among ASEAN member states and China. However, the spike of exports by China to the world after its accession into WTO in 2001 has caused fears across the world. Although ACFTA facilitates trade access into China’s...
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| Format: | Thesis |
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2017
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| Summary: | The establishment of ACFTA is believed to be able to foster closer trade relationship among ASEAN member states and China. However, the spike of exports by China to the world after its accession into WTO in 2001 has caused fears across the world. Although ACFTA facilitates trade access into China’s huge market for ASEAN member states, the great line up of Chinese manufacturers do not only make this access challenging, the existing trade activities among ASEAN member states might also be affected by the Chinese competitors. This study examines the trade flow of parts and components and final goods from Malaysia to other ASEAN member states after the implementation of ACFTA. The workhorse of studying bilateral trade flow, gravity model, is employed. Two separate models are specified with different sets of determinants to study about the trade flow of parts and components and final goods. |
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