Empirical Analysis of Sustainable Trade Effects of FTAs Based on Augmented Gravity Model: A Case Study of China

China has developed many strategies to promote sustainable trade, including accelerating the signing of free-trade agreements (FTAs). However, there is a lack studies examining impact FTAs on growth foreign trade from holistic perspective. This paper applies an augmented gravity model verify creation and diversion effects China’s that are currently in effect. A panel data analysis over period 1995–2019 conducted 34 countries regions, China, Poisson pseudo-maximum likelihood (PPML) employed test three different fixed-effects models. The results show differ across FTAs, with nine generally making positive contributions social welfare growth, remaining five exhibiting varying degrees or contraction effects. Empirically, it clear participation contributed but still needs take prudent action pursue further liberalization order counter potential threat diversion.