Research On High Quality Development Of Regional Economy Driven By China Pilot Free Trade Zone

As an important carrier of China’s transition from "economic and trade opening" to "system opening",the pilot free trade zone has played a great role in testing various economic and financial reform measures and promoting the high-quality development of China’s economy.The construction achievements since the founding of new China for more than 70 years have fully proved the importance of institutional innovation.With the reform of China’s economic system entering the deep-water area,China’s economic development urgently needs to find a breakthrough for a new round of institutional innovation.On September 21,2020,on the seventh anniversary of the listing and operation of China’s first pilot free trade zone-Shanghai pilot Free Trade Zone,China released the news of capacity expansion and upgrading of the pilot free trade zone again.In addition to further expanding the pilot Free Trade Zone in Zhejiang,three pilot free trade zones were established,which means that the layout of China’s pilot free trade zone will further form a new pattern of "1+3+7+6+3" on the basis of "1+3+7+6" in the early stage.On July 9,2021,at the 20th meeting of the Central Committee for comprehensively deepening reform,General Secretary Xi Jinping stressed the need to plan and promote the high-quality development of the pilot free trade zone with "greater efforts".As an important carrier of China’s transformation from "economic and trade opening" to "institutional opening",the pilot free trade zone is an important policy attempt to promote China’s high-quality economic development in the new era.It has played an irreplaceable role in the process of experimenting and exploring a new mode of opening up and foreign cooperation at the national level.Accelerating the construction of a new development pattern with the domestic big cycle as the main body and the mutual promotion of domestic and international double cycles is an important guiding ideology for China’s economic and social development during the 14th Five Year Plan period.As a new highland for China to build a higher level open economic system,how should the pilot free trade zone be positioned under the new development pattern of double circulation?How to make full use of the policy dividends of the pilot Free Trade Zone,such as the first trial of financial reform measures,to dredge the obstruction points in the construction of the new development pattern of double circulation,so as to drive the high-quality development of China’s economy?This series of theoretical and practical problems are major issues to be considered and solved in the process of planning the construction of the pilot free trade zone and building a new development pattern in the future.Based on this,based on the review of the classical economic growth theory,the relevant theory of the economic growth effect of the free trade zone and the relevant literature,this paper first analyzes the development status,construction effect,development orientation and restrictive factors of the free trade pilot zone under the new development pattern of double cycle in detail.Then,through theoretical model and logical analysis,this paper expounds the economic growth effect and dynamic mechanism of the construction of the pilot free trade zone.On this basis,this paper constructs a new comprehensive evaluation index of high-quality economic development and makes a spatio-temporal comparative analysis,and then makes a quantitative test on the effect,dynamic mechanism and heterogeneity of high-quality regional economic development driven by the pilot free trade zone by comprehensively using empirical technologies such as Bayesian identification rule(BIC),double difference(did)and synthetic control(SCM),Based on the actual efficiency of the construction of the pilot Free Trade Zone,its types are divided creatively.Based on the above research conclusions and the actual obstacles to the construction of China’s pilot Free Trade Zone,the seventh chapter puts forward targeted policy references for the pilot free trade zone to better play the policy effect and promote the high-quality development of China’s economy.The main contents of the article are as follows:First,this paper holds that high-quality economic development is a value judgment,which refers to a new state of economic development in which the economic scale and total amount of an economy reach a certain height,the people’s living standards are significant,the social development is highly open,the optimization of economic structure is improved,the coordinated development of economy and society,and the transformation of old and new kinetic energy.Based on this understanding,this paper constructs an index group composed of 12 secondary indicators and 61 sub indicators,and uses TOPSIS entropy weight method to measure the high-quality economic development level of China’s provinces and regions.The measurement results show that China’s high-quality economic development level gradually improves in the sample period.From the perspective of spatial distribution,the focus of China’s economic development quality shows a trend of shifting to the southeast.At the same time,the spatial distribution of China’s economic development quality presents an unbalanced state,which shows that the unbalanced and insufficient phenomenon of China’s development is not only reflected in the total economy,but also reflected in the quality of economic development.Second,this paper uses the double difference model to empirically test the effect of the pilot Free Trade Zone on the high-quality development of regional economy,and analyzes the batch and location heterogeneity of the pilot free trade zone.The study found that,on the whole,the establishment of the pilot Free Trade Zone significantly drives the high-quality development of regional economy,but with the expansion of the pilot Free Trade Zone,its policy effect shows a decreasing trend.In addition,from the perspective of regional heterogeneity,the driving effect of the establishment of inland pilot Free Trade Zone on the high-quality development of regional economy is not obvious,while the driving effect of coastal pilot free trade zone is more significant.which shows that the location of pilot free trade zone will significantly affect the policy effect of pilot free trade zone.Thirdly,this paper further uses the Bayesian information criterion(BIC)method to filter out the key factors among many factors,in order to identify the important position of the system design of the pilot Free Trade Zone in driving regional economic growth.This identification process is an expansion and supplement to the existing literature,and can also provide theoretical support for the expansion and implementation of the pilot free trade zone strategy.The research shows that the establishment of the pilot free trade zone not only effectively drives the high-quality development of regional economy,but also is the core element of many influencing factors.In addition,from the perspective of the pilot Free Trade Zone,financial development,technological progress and the improvement of education level are also the key factors affecting the high-quality development of regional economy.Fourth,through theoretical analysis and combined with the policy documents of the construction of the pilot Free Trade Zone,this paper takes financial development,trade dividend,investment dividend,technological progress and business environment improvement as the five driving mechanisms of China’s pilot free trade zone to drive the high-quality development of regional economy,and makes a more detailed study on the heterogeneity of the pilot free trade zone by using the synthetic control method.The study found that even if the pilot free trade zones are in the same batch and unified location,different individual pilot free trade zones have different effectiveness in the dynamic mechanism.Based on the actual effect of the construction of the pilot Free Trade Zone,this paper divides its types into five types:financial development driven,trade driven,investment driven,technological progress driven and business environment improvement driven,and puts forward policy suggestions on the specific path of differential exploration of the development of the pilot Free Trade Zone.Compared with the previous literature,the possible innovations of this paper are as follows:First,on the basis of clarifying the connotation and extension of the concept of high-quality economic development,the measurement index group constructed in the existing literature is supplemented and improved,and the measurement results are compared and analyzed in time and space between provinces,so as to enrich the relevant literature on the current study of high-quality economic development.In addition,the literature on the economic growth effect of the pilot free trade zone has emerged widely,but it is rare to further think about its impact on China’s high-quality economic development.In fact,the institutional design of financial reform and opening up and trade and investment facilitation in the pilot free trade zone is not only an important driving force to promote the rise of economic aggregate and development speed,The huge dividends released by its institutional innovation are more likely to become an important engine for the high-quality development of regional economy.Therefore,this paper innovatively changes the dependent variable from the scale speed GDP index to the high-quality economic development index calculated by a series of index groups,so as to broaden the research dimension of the existing literature of the pilot free trade zone.Second,although the existing research has paid attention to the impact of the policy innovation of the pilot Free Trade Zone on regional economic growth,what is the position of the impact among many influencing factors?Is it insignificant or obvious?So far,there is no literature to identify and test this problem.In this regard,on the basis of using the double difference to investigate the regional economic growth effect of the pilot Free Trade Zone,this paper further uses the Bayesian information criterion(BIC)method to filter out the key factors among many factors,in order to identify the important position of the system design of the pilot free trade Zone in driving regional economic growth.This identification process is an expansion and supplement to the existing literature,It can also provide theoretical support for expanding the implementation of the pilot free trade zone strategy.Third,on the heterogeneity test of the driving mechanism and transmission path of the pilot Free Trade Zone driving high-quality economic development,this paper not only makes an empirical analysis on the pilot free trade zones in different locations and batches,but also goes beyond the conventional dimension based on the comparison of location and batch in the previous literature in order to more thoroughly open the "black box" behind the economic growth effect of the pilot free trade zone,But innovatively looking for dynamic differences from the individual level.In terms of methodology,this paper further compares the ability differences of different pilot free trade zones in leading the high-quality development of regional economy with the help of dynamic mechanism with the help of synthetic control technology.This empirical process will provide a strong basis for interpreting the development gap between different pilot free trade zones,and then provide a basis for how to promote the kinetic energy upgrading of pilot free trade zones through supporting reforms and innovations such as finance,Help the emerging pilot Free Trade Zone cross the dynamic gap and provide strong theoretical support and policy reference.