Study On The Impact Of The Establishment Of China's Free Trade Zone On The Local Foreign Trade

In the situation where Western countries actively promote new trade agreements such as TPP and TTIP,coupled with the deceleration of China's economic growth,In response to the new international trade environment,transforming China's economic growth pattern and seeking new economic growth points,the Shanghai Free Trade Zone has been born.There are 11 free trade zones in China so far.The Free Trade Zone has become an innovative special economic zone for China to deepen its reforms and expand its opening up under the new economic normal conditions.Therefore,it is of great practical significance to study the impact of the Free Trade Zone on the development of foreign trade in the established regions.This article takes the Shanghai Free Trade Zone as a typical case,and specifically analyzes the changes in the trade pattern and product structure of Shanghai's import and export after the establishment of the Shanghai Free Trade Zone,and initially concludes that the establishment of the free trade zone is conducive to the development of local foreign trade.Based on the case analysis,the paper further uses the provincial panel data,using the difference in difference model to empirically analyze the impact of the establishment of the free trade zone on the regional trade.The results show that the establishment of the free trade zone has significantly promoted the development of regional import and export.Its promotion effect on import is significantly higher than its promotion on export.In addition,this paper combines the propensity score matching method to test the robustness of the empirical results.The matching results further support the empirical conclusions.Based on the case analysis of this article and the empirical research conclusions,the suggestions for promotion and construction of the free trade zone were put forward from the following aspects: the improvement of the trade facilitation level,the change of government functions,the supervision of the legal system,and the regional selection of the free trade zone.