The Impact Of The Establishment Of The Pilot Free Trade Zone On The Quality Of Regional Foreign Capital Introduction

In 2008,the subprime mortgage crisis broke out and the economic crisis spread so globally that the globalization situation suffered a heavy blow.In recent years,with the continuous changes in the international economic situation,in order to better respond to the complex economic situation,on September 29,2013,after in-depth research on the current economic environment and future development direction,the "Notice on Issuing the Overall Plan for China(Shanghai)Pilot Free Trade Zone" was issued,The Shanghai Pilot Free Trade Zone was officially established in the Waigaoqiao area of Shanghai,marking the establishment of China’s first pilot free trade zone and entering a new stage in China’s reform and opening up process.Free trade zones,unlike international free trade agreements,are generally established within a country’s borders,but outside a country’s customs territory.They provide more favorable tax conditions and special customs supervision environment for enterprises entering the free trade pilot zones,aiming to establish a multi-functional economic special zone covering trade,investment,research and development,and other aspects.Since the establishment of the Shanghai Pilot Free Trade Zone in 2013,a total of 6 batches and 21 pilot free trade zones have been established in less than 10 years,forming a preliminary distribution pattern of "1+3+7+1+6+3" pilot free trade zones,covering most provinces,municipalities,and autonomous regions along the eastern coast,central region,and western inland of China.By setting up free trade zones in different regions and giving them greater autonomy to explore and explore the unique endowment conditions of each region,we can promote the differentiated development of free trade zones and summarize a series of replicable and promotable development experiences,providing a pioneering experimental foundation for the country’s future reform and opening up strategy.This is also the most important aspect of free trade pilot zones,It is also the most fundamental goal of establishment.As of July 2021,at the national level,21 free trade zones in China have launched a total of 278 institutional innovation achievements,covering various aspects of innovation such as institutional and regulatory aspects.Although various free trade zones in various regions have explored and summarized many institutional innovation achievements,and have begun to replicate and promote them to other regions of the country,the implementation of relevant achievements and the economic promotion effects have become key research objects for scholars at home and abroad.Therefore,this article takes the perspective of the quality of foreign investment introduction as the starting point to study the impact of the establishment of free trade zones on the quality of foreign investment introduction.This thesis summarizes the conclusions of previous literature research,combined with the current policy orientation of high-quality development,and from the perspective of free trade pilot zones,uses the Differences-in-Differences Model to study the impact of the establishment of free trade pilot zones on the quality of regional foreign investment introduction.Among them,regarding the construction of indicators for the quality of foreign investment as a dependent variable,this article focuses on the evaluation system of foreign investment quality indicators by Kumar et al(2002).Five major indicators of foreign investment overall scale,export ability,profitability,management ability,and technological content are selected as the secondary indicators of foreign investment quality,and the weight of each indicator is determined using the entropy method,Using this to construct a composite indicator of foreign investment quality.For the currently established free trade pilot zones,combined with the sample data range,this article selects the first three batches of free trade pilot zones as the experimental group,with industrial structure,fiscal expenditure,consumption level,technology level,and environmental level as control variables.The regression model sets fixed regions and fixed years.Finally,the regression results show that the establishment of the three batches of free trade pilot zones has a promoting effect on the improvement of foreign investment quality level,The consumption level and technological level have also improved the quality of foreign investment to a certain extent,but the fiscal expenditure is not conducive to the improvement of the quality level of foreign investment.In addition,in the regional heterogeneity test,it was found that the policy effect of inland free trade pilot zones is better than that of coastal areas,and the establishment effect of free trade pilot zones in the Chengdu Chongqing and Beijing Tianjin Hebei urban agglomerations is better than the promotion effect of foreign investment in urban agglomerations such as the Yangtze River Delta,Pearl River Delta,and the middle reaches of the Yangtze River.When further exploring specific indicators of foreign investment quality,it was found that export capacity has a significant contribution to the quality of foreign investment.Therefore,it is suggested that the establishment of future free trade pilot zones should shift towards single export growth and further strengthen policy preferences for inland regions.In the past,research on foreign capital mainly focused on the quantitative aspects of capital introduction.However,with the continuous advancement of China’s economic development,especially the current high-quality development,it has become the main focus.Only exploring the quantitative factors of foreign investment can no longer meet the needs of existing research.Therefore,this thesis mainly starts from the quality of foreign investment,combined with the establishment of free trade pilot zones,and subdivides the quality of foreign investment into the overall scale of foreign investment The five indicators of export ability,profitability,management ability,and technological content measure whether the establishment of free trade pilot zones has had a positive impact on the quality of foreign investment from the multiple output benefits of foreign investment.Thus providing suggestions and suggestions for high-quality development.