Research On The Effects Of FTZ Strategy On Foreign Trade In Henan Province

Under the background of the trade protectionism and the anti-globalization,there have diverse degree of negative impacts on all regional trade economies.China has begun to take the strategies of "The Belt and Road Initiative" and "Free Trade Zone" so that continues maintaining the high growth rate of export-oriented economy.With the constant adjustment in strategic planning,system arrangement,policy measures and other aspects of foreign trade,the external economy of Henan province is developing rapidly and the depth of participation in the international market is gradually strengthening recently.However Henan province still has the problems of low trade contribution to the economy,excessive proportion of processing trade,small proportion of technology-intensive products in the structure of trade commodities,low exploration of emerging markets,and falling behind in development of service trade at present.Henan's foreign trade industry has been upgraded and the opening degree of inland areas has been expanded by seizing the strategic opportunities of export-oriented economy and implementing export-oriented economic policies.As an export-oriented economic strategy to promote trade liberalization and investment facilitation,the FTZ can provide opportunities to boost foreign trade industry of Henan province.At present,it has been more than two years since the establishment of Henan FTZ,and the influence on trade has been preliminarily shown.For the deep analysis of the impact of Henan FTZ on its foreign trade,this paper deeply explores the qualitative mechanism firstly,and finds that FTZ strategy has an positive effect on trade through promoting facilitation of trade,developing new models and forms of trade,improving technological innovation ability,exploiting new markets,enhancing the competitiveness of trade in services and promoting the development of processing trade.Secondly,the synthetic control method is used to evaluate the trade effect of FTZ strategy.It is found that the establishment of FTZ has a positive effect on the export,but the promotion of import trade is not significant.The promotion effect of import needs to be further released.The analysis of the impact of FTZ on Henan's trade shows that the promotion effect on import trade is not significant,the government-led management model reduces the enthusiasm of market participation,fails to form the competitive advantage of trade industry,does not play a strong role in the transformation and upgrading of processing trade,and lacks of the core of trade-oriented talents.The long-term survival mechanism of Henan FTZ in the future is studied to explore the long-term impact of FTZ strategy on Henan's trade.The trade promotion effect of FTZ can be better exerted by focusing on the promotion of FTZ on import,reducing the government control,cultivating competitive advantages of trade industries in FTZ,upgrading and adjusting the processing trade,and introducing and training trade-oriented talents vigorously.There are still a series of problems in promoting process of FTZ strategy on Henan's trade,including that government-led management model reduces the enthusiasm of market participation,fail to form the competitive advantage of trade industry,lack of the trade-oriented talents,the promotion effect on import trade is not significant,do not play a strong role in transforming and upgrading of processing trade.The trade promotion effect of FTZ can be better exerted by reducing the government control,cultivating competitive advantages of trade industries in FTZ,introducing and training trade-oriented talents vigorously,focusing on the promotion of FTZ on import,upgrading and adjusting the processing trade.