Research On The Impact Of The Establishment Of Free Trade Zone On Foreign Investment

Since the establishment of the first free trade zone—— Shanghai Free Trade Zone,nearly seven years has passed,our country has gradually realized a new open three-dimensional economic pattern of 1 + 3 + 7 + 1 + 6.As one of the strategic deployment contents of "promoting the formation of a new pattern of comprehensive opening up",what is the impact of the free trade pilot zone policy on the rapid development and promotion period?Clarifying this issue is of great practical significance for a profound understanding of the early development results of the FTZ policy and for further replication,promotion,and deepening of opening up in the future,so as to better promote high-quality economic development.Based on this,this paper uses the provincial panel data of China from 2009 to 2017 as the processing group of the provinces or municipalities where the first and second batches of the four free trade pilot areas are established;and regard the provinces or municipalities where FTZ has not been established before 2015 as control groups;using the actual amount of foreign investment in each province as the interpreted variable to measure the level of regional foreign investment;adding economic development level,industrial structure,total retail sales of consumer goods,transportation infrastructure construction,labor costs,the degree of opening,the degree of marketization are used as control variables;the dummy variables of time and policy are set as explanatory variables.As for the test methods,this paper uses the difference in difference method(DID)for basic regression,to test the significance of the coefficients of the multiplicative terms of the time and policy variables;using three methods such as propensity score matching(PSM),to test the robustness,and using the parallel trend test to test the premise of DID.Various empirical tests show that the establishments of the free trade zone can have a significant positive effect on the level of foreign investment in the established area.The GDP level of the provinces and cities,the development level of the tertiary industry,the level of infrastructure construction,the total retail price of consumer goods is positively correlated with the level of foreign investment;while labor costs and government intervention are negatively correlated.Subsequently,the three robustness test methodsshow that the empirical test is very robust,and the two methods of homogeneity test further prove the reliability of the above conclusions.