The Policy of Cross Border E-Commerce Comprehensive Pilot Zone and the Growth of Urban Total Factor Productivity — Empirical Testing Based on Double Difference Method

Abstract

Since the establishment of the first pilot zone in 2015, China’s cross border e-commerce has rapidly developed, becoming a new engine driving international trade. This paper delves into the impact of China’s cross border e-commerce comprehensive pilot zones on urban total factor productivity. The paper first provides an overview of the development trajectory and current status of cross border e-commerce comprehensive pilot zones and analyzes the potential mechanisms through which these pilot zones might affect urban TFP. Utilizing data from 70 major cities between 2011 and 2019, the study employs a Difference-in-Differences approach to evaluate the impact of the pilot zone policies on urban TFP growth. The results indicate that the establishment of pilot zones significantly enhances urban TFP growth rates, with more pronounced effects in the eastern regions. The regional heterogeneity test reveals that the pilot zones positively influence TFP growth in the eastern and central regions, while the impact on the western and northeastern regions is not significant. Robustness checks further confirm the significance of the policy effects. Based on the findings, the paper proposes policy recommendations, including strengthening policy support, enhancing infrastructure development, reinforcing technological innovation capabilities, and promoting regional coordinated development to fully leverage the role of cross border e-commerce comprehensive pilot zones in boosting urban TFP and driving high-quality economic development. Overall, this paper provides empirical evidence for understanding how cross border e-commerce comprehensive pilot zones enhance urban TFP through technological innovation and policy support, offering important insights for optimizing relevant policies and promoting regional economic development.