Trade effect on investment has 2 ways, as a promoting effect, the substitution effect. Promoting
effect refers to the growth of trade and investment has "complementary relationship", with each
other to promote, and substitution effect is refers to with reduction of barriers to trade, the trade
volume between the two countries increased, so the choice of trade investment in alternative energy,
investment and trade will has the opposite effect.
the Treaty of free trade area, the rapid development of bilateral trade and investment, such as the
two-way investment between China and ASEAN, is the development level of the two-way investment.
The development level of the two-way investment is lagging behind in the trade of China and
Thailand.