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1、The Free Trade Agreement (FTA) between Peru and China has developed a new pathfor economic cooperation.Both nations complement each other economically based ontheir history, commercial ties, and overall mutual trust.Peru
2、 has to take advantage ofthis great economic relationship with China in order to learn and stimulate economicwell-being.Peru has been and will remain a primary export economy; meanwhileChina is an industrialized economy.
3、It is because of Peru's position as a primary goodexporter that has led to China to invest and trade in such products.Currently, thecommercial exchange of goods is the most developed relationship among both nations.Howev
4、er, there is an urgent need to drift away from the same old pattern.The modality,export capacity, and services sector which have shown Peru's weaknesses have toundergo a drastic evolution.The FTA serves as the perfect pl
5、atform to stimulateeconomic growth.China will contribute to investments in infrastructure, growth inproduct diversification, and increase the level of technological transfer.
This research thesis describes the conce
6、pts and types of free trade agreements andcurrent trading partners of Peru and China.The advantages of a FTA as well as theeconomic impact in both parties, Peru and China, are to be observed.We will learnabout the commer
7、cial history between Peru and China; we will see how the FTAsigned by these two nations has evolved.The trade balance performance, the progressand setbacks after signing this trade agreement are also important.To identif
8、y theeffects of FTA it is important to unravel the effects of regional integration of otherchanges in the economy.To do this, we will execute the gravity model, whichestimates bilateral trade between countries and explai
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