Research On The Impact Of Shanghai Free Trade Zone Construction On Attracting Foreign Direct Investment

In recent years,the global economy has changed dramatically from the past.On the one hand,regionalization,multilateral or bilateral trade and investment rules have gradually become the development trend.On the other hand,some developed countries have adopted trade and investment protection measures to stabilize their economic development and curb the development of emerging economies.At the same time,the domestic economy is also facing the dilemma of structural adjustment and slowdown in growth.Therefore,the establishment of the China(Shanghai)Pilot Free Trade Zone is a major strategic layout in response to internal and external pressure and development needs.As an extremely important policy experiment in China,the core of Shanghai Free Trade Zone construction lies in system construction,that is,investment management,trade supervision,financial services,government management system,especially the construction of investment management system.Among the factors of production on which economic development depends,capital is an indispensable part.Therefore,it becomes particularly important to measure the impact of the establishment of Shanghai Free Trade Zone on capital inflow,especially on FDI,which factors can affect FDI inflow,how institutional innovation affects FDI inflow,as well as the risks in the process of FDI inflow and the transformation of government functions.Firstly,this paper constructs the influence mechanism through related theories such as factor flow,international division of labor and transaction costs,and discusses from the theoretical level the influence mechanism of FTA construction or institutional innovation on FDI inflow.On this basis,the influencing factor framework of FDI inflow is constructed to explain which factors affect FDI inflow.Secondly,it analyses the construction status of Shanghai FTA from three aspects: system innovation,industry development status and governance system,which provides experience basis for the following analysis.Thirdly,we use the synthetic control method to discuss the impact of FTA construction on FDI at the empirical level.The effect of policy implementation in the Shanghai Free Trade Zone is illustrated by comparing the differences between the treatment group and the control group.At the same time,it summarizes the influence mechanism of FTA construction or institutional innovation measures on FDI inflow,and explores the transformation of government functions in the process of capital inflow.Finally,it is proposed that Shanghai Free Trade Zone should take into account both openness and development,openness and supervision in parallel,deepen the degree of marketization,clarify the division of powers and responsibilities,implement policies reasonably and orderly,and strengthen the systematic integration of institutional innovation,so as to optimize the system of Shanghai FTZ,accelerate the transformation of government functions and promote the modernization of government governance.