The Impact Of China's Domestic Free Trade Zone On Economic Development

The central government implemented the "Belt and Road Intiative" and the strategy of developing the western region to promote the establishment of the inland free trade zone.The establishment of the inland free trade zorne will help the provirnce's opening up to the outside world and have a profound impact on promoting regional economic development Based on the theory of free trade and the theory of non-ecquilibrium economic growth,this paper analyzes the development status of the inlancd free trade zone and the status quo of regional economicdevelopment,and analyzes the four aspects of trade effect,economies of scale,spillover effect and siphon effect.On this basis,taking the Shaanxi Free Trade Zone as an example,using the"counter-fact" analysis model,select the two economic growth indicators of the total impor and export growth rate and the industrial added value growth rate of Shaanxi Province and other provinces and cities to reflect the trade effect and economies of scale.The effect is to determine the extent of the impact of the establishment of a free trade zone in Shaanxi Province on regional economic development.Finally,it proposes countermeasures to promote the inland free trade zone to promote regional economic developgment,and provicdes policy recommendations for the harmonious development of regional economy in inland regions.The main conclusions are as follows:(1)The economic development of the inland areas is in good condition,the scale of the economy is grardually increasing,the scale of foreign trade is expanding year by year,and the industry is mainly based on industry and service.The impact of China's inland free trade zone on regional economic development is mainly reflected in four aspects:attracting foreign investment,promoting trade facilitation,driving industrial development,and promoting institutional innovatiorn.(2)After the establishment of the Inland Free Trade Zone,the creation and transfer of trade dividends will be brought about,and the level of trade facilitation will be improved.Secondly,the economies of scale formed will have an external and internal role,which will increase consumer income and improve enterprises.The pre-tax profit;once again,the construction of the inland free trade zone is mainly based on institutional Innovation.At the same time,the implementation of preferential policies will bring about industrial transfer and promote the development of foreign trade in inland areas.Finally,the inland free trade zone will also lead to The production factors in the surrounding areas flow into the free trade zone,thus inhibiting the development of the surrounding areas.(3)The empirical results of Shaanxi Free Trade Zone on regional economic development show that the growth rate of industrial added value of Shaanxi Province is 0.81%on average,and the growth rate of total import and export volume is 0.25%,that is,the ecornomices of scale of Shaanxi Free Trade Zone is 0.81%.The trade effect is 0.25%.Therefore,after the establishment of the Shaanxi Pilot Free Trade Zone,it will have a positive impact on the regional economic development of Shaanxi,and conduct a test of robustness to further enhance the accuracy and effectiveness of the results.