A Research On The Core Functions Innovation And Economic Effects Of China (Shanghai) Pilot Free Trade Zone

In the construction of free trade zone, Shanghai has been the economic leadership zone in China. From1990 to 2013, Shanghai Free Trade Zone, after 20 years of continuous development has achieved the transformation to Shanghai Pilot Free Trade Zone(FTZ is referred). The construction of FTZ and Shanghai "four centers" are inextricably linked, and it’s the manifestation of China’s economic reform at the present stage and opening up into a higher level of development stage. Take building "four centers" in the background, what’s the new core economic functions, how to design these new features, and what’s the economic effects arising from the core functions are exactly the problems this paper attempts to study.This paper sums up the successful experience of world’s major free trade zone from the legal environment, government management system, customs supervision model in five areas. In contrast, we find the problems of Shanghai Free Trade Zone, such as regulatory cumbersome, low efficiency of customs clearance, restrictive monetary policy, and poor government management efficiency. Therefore, the core economic functions of FTZ must break the original shackles. The building connotation of "four centers" should be the construction target frame of reference. Five new core functions are proposed including commodity circulation and distribution, information integration, resource integration and radiation attract comprehensive services and promoting urban transformation. Take the life cycle theory, the port-hinterland relations theory as a guide, this paper conducts basic core functionality and innovative design from four aspects of economy, trade, finance and shipping.Co-integration test and Granger causality are used through the study of historical data to test the economic effects of FTZ. (FTZ was established in September 29,2013,FTZ runs for only 7 months until this paper finished,the latest date is failed to get.So the date of FTZ from 1993 to 2012 is used).We obtain that by increasing the openness of the Shanghai area, the trade ability and the ability to gather resources and stimulate economic growth will be stronger. Each 1% increased in exports will lead to an increase about 15% of Shanghai Waigaoqiao GDP and 0.08% of Shanghai GDP;FDI increased by 1%, then Shanghai Waigaoqiao GDP is increased by about 28% and about 0.14% of Shanghai GDP.Construction of FTZ provide realistic path for China’s reform and opening up, economic upgrade. However, the effectiveness of management models, financial liberalization, trade facilitation and other measures must be tested and adjusted in practice. Within the expected time, we must summary experience or practices that can be copied and operated, to provide experience for the development of free trade zones in other regions. This paper summaries four-point proposals for the transition of Dongjiang Free Trade Port Zone of Tianjin including the clear positioning, strengthening infrastructure, deepening administrative reform, the formation of local characteristics and other aspects.