An Analysis Of The Impact Mechanism Of Government Innovation On Foreign Direct Investment From The Perspective Of Institutional Transaction Cost

The development of pilot free trade zone is not only an economic measure to link up international trade rules,but also an important mission to improve China’s institutional discourse power in international competition.In the process of the system operation,the system transaction cost mainly manifests in the political and commercial relations stratification plane,is affecting the free trade test area management main body to play the function better in the government-enterprise interaction,to Act as a deterrent to the improvement of the business environment in the pilot free trade zone.In this context,the paper builds an analytical framework for the impact of pilot free trade zones on the foreign direct investment from the perspective of institutional transaction costs,from the three dimensions of trade structure adjustment,trade system design and service system efficiency,it is concluded that the system innovation of Zhejiang Pilot Free Trade Zone effectively reduces the system transaction cost.Then the paper uses the double difference model to test the hypothesis of Zhejiang free trade test promotion Foreign Direct Investment by comparing the“counterfactual”estimates of the foreign investment level between the experimental group and the Control Group.Finally,combining the case of Zhejiang FTZ Foreign Direct Investment,this paper summarizes the impact mechanism of the FTZ on Foreign Direct Investment from the perspective of institutional transaction cost.In the light of the existing institutional innovation means in promoting the Foreign Direct Investment in the Zhejiang pilot free trade zone,such as“marginal innovation”,the connection of international investment rules to be improved,the difficulty of policy breakthrough and the limited space for institutional innovation;In order to solve the problems of low coordination of institutional innovation and insufficient financial system innovation in the whole oil product industry chain,this paper proposes that the authority of management should be further lowered to give free trade test zones more room for innovation,and that opening and supervision should go hand in hand,we should take the institutional transaction cost as the cut-in point to optimize the business environment of the pilot free trade zone,improve the synergy of institutional innovation and strengthen the reform path of system integration of institutional innovation...