Study On The Economic Effect Of Shanghai Pilot Free Trade Zone Policy On The Yangtze River Delta Urban Agglomeration

China(Shanghai)pilot Free Trade Zone,as a key stroke in the 40 year history of reform and opening up,has made a good start for the overall deepening of the reform of the central strategic layout,and also for the construction of China’s pilot free trade zone.Since the 1950s,in order to eliminate tariff barriers or non-tariff barriers,as well as to promote the liberalization of trade in goods and services,countries around the world have successively set up pilot free trade zones.Under the current economic conditions,economic globalization and regional economic integration have further promoted the development of free trade.In order to further connect with international trade,China has also begun to establish a pilot free trade zone.In September 2013,China(Shanghai)pilot free trade zone was first established.As the first pilot Free Trade Zone in China,how does its establishment affect the economic development of surrounding cities?It is of great significance for the Yangtze River Delta urban agglomeration to solve this problem.This paper studies the economic effect of Shanghai pilot Free Trade Zone on the Yangtze River Delta urban agglomeration from the perspective of economic integration.Based on the data of GDP per capita and the proportion of secondary and tertiary industries in GDP of 268 prefecture level cities in China from 2001 to 2016,this paper studies the economic effect of Shanghai free trade Experimental Zone on the Yangtze River Delta free trade Experimental Zone according to the synthetic control method.Then,combined with the background of economic integration in Yangtze River Delta,the radiation effects of Shanghai free trade area on Yangtze River Delta urban agglomeration are estimated and analyzed.The economic radiation effect of Shanghai on Yangtze River Delta urban agglomeration is studied by gravity model,and then the economic coordinated development of Yangtze River Delta urban agglomeration is discussed.Finally,according to the above empirical results,we put forward targeted policy recommendations.Specifically,the research is carried out from four aspects.The first part is literature review.This paper systematically reviews the relevant literature at home and abroad,including the definition of FTZ,the impact of FTZ on the regional economic level,regional economic integration and the radiation effect of FTZ.The second part analyzes the development status and advantages of Shanghai pilot Free Trade Zone,as well as the development evolution and development goals of the Yangtze River Delta urban agglomeration.The third part includes the fourth and fifth chapters,which are empirical analysis.The fourth chapter uses the synthetic control method to analyze the economic effect of Shanghai pilot Free Trade Zone on the Yangtze River Delta urban agglomeration,and further analyzes the impact on the industrial structure of the Yangtze River Delta urban agglomeration.The fifth chapter,based on the previous chapter,combined with the background of economic integration in the Yangtze River Delta,uses the gravity model to explore the problems existing in the process of connecting the Yangtze River Delta urban agglomeration with Shanghai free trade zone.In the fourth part,the author gives some suggestions on the evidence and problems found in the third part.The results show that:(1)Shanghai pilot free trade zone has significantly promoted the growth of per capita GDP of the Yangtze River Delta urban agglomerations,with an average annual per capita GDP growth of 1648.35 yuan;(2)While GDP per capita is positively affected,the industrial structure of the Yangtze River Delta urban agglomeration is also affected.Shanghai pilot free trade zone has no driving effect on the secondary industry,while the average annual treatment effect on the tertiary industry is 1.05 percentage points.This shows that the main role of Shanghai pilot Free Trade Zone in promoting the economy of the Yangtze River Delta urban agglomeration lies in the tertiary industry,which should be vigorously promoted;(3)The radiation driving effect of Shanghai Free Trade Zone on the surrounding cities is unbalanced.To sum up,the direction of reform in the future should include promoting the development of service industry and deepening the economic integration of the Yangtze River Delta.The research significance of this paper mainly includes three aspects:(1)the focus of economic effect research is on the Yangtze River Delta urban agglomeration,and the previous research in this area is relatively small.In the past,the research mainly focused on the impact of policies on the region.Therefore,this paper firstly makes an average of the number of cities in the Yangtze River Delta,and then uses the synthetic control method to study.(2)in terms of data,this paper uses the panel data of 268 prefecture level cities from 2001 to 2016.Compared with previous studies,the results may be more accurate.(3)On the basis of positive economic effects,this paper studies the influence of Shanghai Free Trade Zone on the industrial structure of the Yangtze River Delta urban agglomeration,and further explains the specific target of the free trade zone driving the regional economy.Therefore,this paper uses the ratio data of the seeondary industry and the tertiary industry in GDP and the synthetic control method to study.(4)Under the background of economic integration,this paper uses the gravity model to study the radiation effect of Shanghai Free Trade Zone on the surrounding cities.Furthermore,the paper discusses how to connect the surrounding cities with the Shanghai free trade zone so as to give full play to the radiation driving role of the zone.