Research On The Mechanism And Institutional Innovation Of Free Trade Zone

Free Trade Zone is a special economic area which is separated from the other economic areas. In order to obtain some definite economic objectives, nations established Free Trade Zones by some special economic policies and instruments. Free Trade Zone has a history of more than 450 years and there are more than 1200 Free Trade Zones worldwide. China has set up 15 bonded zones in its coastal cities from 1990.In addition, different kinds of special economic area have been established, including Boned Zone Export, Processing Zone, Bounded Logistics Park, and so on. During the process of economic globalization, these areas are facing rigorous challenges in such aspects as administrative system, laws and regulations, functions, etc.Therefor, the State Council has approved 4 Bonded Port Area ,located in Shanghai,Tianjin,Dalian and Hainan separately. Under this background, it is necessary to study Free Trade Zone and it's operating mechanism.Tianjin Dongjiang Bonded Port Area processes the most preferential policies, the highest efficiency, most convenient customs clearance and most loose environment. It is characteristic of Free Trade Zone. Institutional innovation is the breakthrough of improving efficiency of the area and key point of Reform Testing Area.The main purpose of the paper is to discuss the mechanism of the Free Trade Zone under the background of economic globalization. This paper analyze experience of Free Trade Zone and Free Port in other countries and areas, compare the Bonded Port Area and Free Trade Zone in real sense, make SWOT matrix to discuss the mechanism and system of Tianjin Dongiang Bonded Port Area in aspects such as legislations and regulations, administrative system and Customs policis.The paper summarizes the common points, seeks for the differences, make a deep analysis on how to build trade facilitation platform, improve administrative system and perfect relative laws.In a word, the institutional innovation of Free Trade Zone in China should be guided by the idea of trade and investment facilitation, based on the reference of experience and lessons of other nations and areas. In order to seize development opportunities and realize the transition of Free Trade Zone, it is crucial to make the Bonded Port Area a regional economic growth engine and a wonderful example on institution reform.