The Impact Of Pilot Policies Of The Free Trade Zone On The Labor Income Share Of Enterprises

There is no doubt that the 14 th Five-Year Plan is an important period in the construction of China’s new development pattern.Pilot free trade zones will serve as an important carrier and link to connect the domestic and international double cycles,and boost the high-quality development of China’s economy.From 2013 to 2020,dots and planes will be connected,forming a pilot pattern of "East,West,north,South,central",with 21 pilot free trade zones,highlighting the concept of extensive consultation,joint contribution and shared benefits.In China’s pilot free trade zone construction is about to expire 10 years,the Party in the twenty Ten report to China’s pilot free trade zone and put forward new requirements,need each free trade zone to do something new,to "implement the strategy of pilot free trade zone upgrade".The ultimate value goal of this new development concept is to achieve common prosperity for all the people,and the share of labor income reflects the proportion of labor remuneration in GDP,which can reflect the pattern of initial distribution of national income.If we can increase the proportion of labor remuneration in the primary distribution,it will not only help optimize the structure of income distribution,but also help achieve common prosperity more actively and successfully.Therefore,it is of great significance to study the impact of pilot free trade zones,an open policy reflecting high-quality development,on the share of labor income,and to balance efficiency and equity in the process of promoting development,which is of great significance to the realization of sustainable economic development and common prosperity in the new era.Based on the panel data of China’s A-share listed enterprises from 2000 to 2021,starting from the perspective of production factor distribution theory,this paper adopts multi-period DID to investigate the impact of the pilot free trade zone,which promotes the opening-up policy,on the labor income share of enterprises,so as to provide some characteristic factual basis for balancing efficiency and fairness.The results show that:(1)Pilot policies of free trade zone are conducive to increasing the share of labor income of enterprises.The results showed that the pilot policies of the free trade zone significantly increased the labor income share of the sample enterprises.After a series of robustness tests,such as parallel trend hypothesis,PSM-DID and placebo test,the regression results before and after were consistent.The hypothesis that the pilot zone policy will increase the labor share by strengthening the complementary relationship between capital and labor is supported.(2)The construction of free trade zone exerts the complementary effect among production factors by changing the capital investment level and employment scale of enterprises,thus affecting the labor income share of enterprises.Both of them can strengthen the complementary relationship between capital returns and labor returns,and support the research hypothesis that the complementary effect of production factors is stronger than the substitution effect.(3)The increasing effect of pilot policies of free trade zone on labor income share is more significant in non-state-owned enterprises,manufacturing enterprises,enterprises in central and western regions and small and medium-sized enterprises.Heterogeneity test shows that the positive promotion effect of pilot policies exists in non-state-owned enterprises and enterprises in the secondary industry.At the same time,the positive influence of enterprises in the east,central and western regions increased from small to large.And the larger the enterprise scale,the smaller the effect.In view of the above research conclusions,the following policy recommendations are put forward:(1)The opening-up policy should be actively promoted at the current stage.We will promote pilot free trade zones and actively expand them to create an environment for accelerating the flow of production factors and absorbing high-quality production factors.(2)In the process of promoting opening-up,special attention should be paid to supporting the adjustment and upgrading of local enterprises.(3)Related to the adjustment and upgrading of enterprises,we should pay high attention to the skill transformation and upgrading of low-skilled labor force.