Abstract
Based on two facts, one is bilateral free trade agreements with investment provisions are becoming more and more popular, the other one is government can't obtain specific information of profit status about domestic enterprises on overseas because of incomplete information, this paper establishes an free trade agreement network formation game model where bilateral free trade agreements imply unrestricted FDI. Main results show that: if the total number of countries in a model is larger than 5, star FTA network is stable, but when the total number of countries is equal to 3 or 4, star FTA network is not stable, empty network is stable, the general characteristics of FTA network which exists an individual country social welfare improving path from government perspective.
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