An Analysis Of The Influence Of China's Pilot Free Trade Zone On Economic Growth

By 2019,the provinces implemented the Pilot Free Trade Zone have reached 18 in our country.As an important policy of deepening reform and opening up and developing the new normal of economy,the Pilot Free Trade Zone has a great strategic significance for transforming government functions,promoting financial marketization,internationalization and even enhancing China's international influence.Therefore,it is so important to research the economic impact of the Pilot Free Trade Zone and to examine the achievements of the Pilot Free Trade Zone.Firstly,this paper analyzes the current development of the Pilot Free Trade Zone in our country and the theoretical basis of the Pilot Free Trade Zone from the theoretical point of view.And expound the development orientation of each provinces of the Pilot Free Trade Zone in China in detail.At the same time,this paper take the Shanghai and Shandong as a typical example mainly to illustrate the economic promotion effect of the Pilot Free Trade Zone in specific data.Based on that,this paper introduces the method of empirical research and Provincial Panel Data for2009-2018 were put into use.The influence of the establishment of the Pilot Free Trade Zone on regional economy is analyzed by using Difference-in-Difference.The results show that the establishment of the Pilot Free Trade Zone has significantly promoted the economic growth of the region.In addition,this paper combines the method of Propensity Score Matching to test the robustness of the empirical results on the existing research,and the matching results further support the empirical conclusion.According to the empirical analysis,this paper puts forward the following political suggestions on the construction of the Pilot Free Trade Zone: First,improve the system and to strengthen the coordinating role of the government;Second,establish a sound financial system and management system for the Pilot Free Trade Zone;Last,we need to deepen the policy of reformation and opening and improve the quality of foreign investment.