Research On The Effect Of The Establishment Of The Free Trade Zone On The Upgrading Of The Industrial Structure In Shanghai

With the formation of the global supply chain system and the increasingly close trade between countries,the development of free trade zones has also achieved rapid progress.As an important platform for international trade,the free trade zone plays an important role in expanding trade,introducing capital and upgrading the industrial structure.However,my country occupies a core position in the global supply chain.How to use the open platform of the free trade zone to promote the upgrading of the industrial structure and deal with the everchanging international trade issues is the main topic of my country’s indepth opening to the outside world.Therefore,this paper selects the first batch of establishments in 2013.The Shanghai Free Trade Zone is used as the research object to demonstrate whether the establishment of the Free Trade Zone can promote the upgrading of the industrial structure?Through which influence paths will it play a role in the upgrading of the industrial structure? How to affect the effect and so on.First of all,this paper uses the synthetic control method to further demonstrate the positive effect of the establishment of the free trade zone on the upgrading of the industrial structure in Shanghai.Secondly,in order to explore how the establishment of the free trade zone affects the upgrading of the industrial structure,this paper constructs a mediation effect model to test the impact path.The results show that the establishment of the free trade zone can significantly enhance the technological innovation effect,resource allocation effect and industrial agglomeration effect,and they simultaneously act and significantly promote the upgrading of regional industrial structure.Technological innovation has transformed the traditional extensive economy driven by investment into an intensive economy,further reducing production costs,promoting the diversification of enterprise development and the optimization and upgrading of industrial structure.The construction of the free trade zone has further promoted the redistribution of production factors in the world,reaching the state of optimal allocation of resources,making the flow of funds more inclined to industries with good development prospects and high return on investment,and the flow of resources between different industries,It will make the distribution more reasonable,the production efficiency will gradually improve,and the resource allocation effect will be generated,which will eventually lead to the optimization and upgrading of the industrial structure.Industrial agglomeration can give full play to the cost advantages brought by economies of scale and scope,and can better discover the comparative advantages of each enterprise,thereby forming vertical and horizontal cooperation and division of labor,promoting the development of economies of scale and upgrading of industrial structure,thereby improving resource utilization efficiency.Finally,this paper provides some policy suggestions based on the empirical conclusions: give full play to the role of the free trade zone in promoting the upgrading of the industrial structure,and on this basis,promote the construction of the free trade zone by improving technological innovation capabilities,optimizing resource allocation,and improving the industrial system.