Research On The Impact Of Pilot Free Trade Zone On The Development Of Open Economy

By 2021,the number of pilot free trade zones established by China has increased to 21.The pilot free trade zone can expanding opening to the outside world and improving China’s international influence.It is an important policy for deepening reform and opening up.So it is of great practical significance to explore the impact of the pilot Free Trade Zone on the regional open economy and verify the development achievements.This paper provides theoretical support for China to develop an open economy by using the pilot free trade zone.Guided by various classical international trade theories,summarizes the connotation and characteristics of open economy and the development status of the pilot Free Trade Zone,and forecasts its future development potential,So as to provide a theoretical basis for how to build an open economic development from the perspective of free trade pilot zone.According to the provincial panel data from 2010 to 2019,it is proposed to make a evaluation via the entropy method to obtain the annual development level of open economy in each province,and use the multi-stage double difference model to explore whether the establishment of free trade pilot zones in various regions of China has a positive impact.The propensity score matching method,virtual policy time and placebo test of virtual experimental group are further introduced to test the robustness of existing studies,so as to support the empirical conclusion.Based on the results,this paper makes a conclusion and puts forward policy suggestions in the future.First of all,we need to improve the system of the pilot free trade zone and strengthen the coordination role of the government.Focusing on the core strategic goal of institutional innovation,we should improve the system from all aspects,strengthen government functions and give full play to the guiding role of the government.Secondly,establish and improve the financial system.It is also a necessary condition for the government to give full play to its coordinating role.It can increase the effective supply of the government and give full play to its guiding and coordinating role.Finally,we should open wider to the outside world.Revise the corresponding policies and regulations,ease market access to a certain extent,expand the investment scale of foreign-funded enterprises,establish and strengthen the supervision system,screen the investment quality of foreign-funded enterprises,selectively introduce foreign capital and develop high-tech industries.