Research on the Influence of FTZ Policy on Regional Economy

Abstract

China's free trade zone has achieved relatively mature development, showing a trend of extending from the east to the West. Current studies generally believe that the early establishment of the free trade zone will have a positive impact on the near area, so what about the establishment of the third inland free trade zone? In order to study its economic impact, this paper uses DID method to select the annual panel data of Chinese provinces, cities and autonomous regions from 2006 to 2018, from economic growth, foreign trade and freight volume, etc. This paper evaluates the economic effects of three free trade zones in the middle and upper reaches of the Yangtze River, namely, Sichuan, Chongqing and Hubei. According to the functional orientation of the three FTZ, the mechanism of the three FTZ is analyzed qualitatively. In terms of quantitative research, this paper uses the double difference method to analyze the differences in economy, trade and freight volume after the establishment of the free trade zone by analyzing the coefficients of policy variables and their significance. A robustness test was carried out on the impact of the post-policy implementation on the regional economy and foreign trade, and it was concluded that the three provinces had a positive impact on the regional economy and trade. Finally, relevant development suggestions are put forward.