Study On Economic Growth Effect Of China(Shandong) Pilot Free Trade Zone

With the continuous development of the world economy,in order to better adapt to the needs of international trade,free trade area have come into being and achieved far-reaching development.Free trade areas have become a very important way for countries and regions to strengthen economic cooperation with each other,attract foreign investment,stimulate domestic demand,increase import and export,and enhance their competitiveness.Our country is currently under construction in more than 20 such Free Trade Area(FTA),involving more than 30 countries and regions.In addition to the above types of Free Trade zones,China has also given full play to Chinese characteristics and established a number of Free Trade zones(FTZ)in China.China’s first free trade zone,the Shanghai Free Trade Zone,was established on August 22,2013.After that,a number of free trade zones were quickly established across the country.Up to now,the number of free trade zones in China has reached 21.As a big economic province in China,Shandong’s GDP has steadily ranked among the top three in the country for many years.It is also a big coastal province,close to Japan,South Korea and other economically developed countries,so it can be said that Shandong is fully equipped with the conditions for the establishment of a free trade zone.On August 26,2019,the China(Shandong)Pilot Free Trade Zone was officially established.Compared with other coastal provinces,Shandong is relatively late to establish a free trade zone.Although it did not seize the first opportunity,it can speed up to strengthen the construction and realize curve overtaking by extensively learning from the development experience of other established free trade zones.So after the establishment of the free trade zone,the impact on Shandong’s economic development in the end?From the macro point of view,this paper evaluates and studies the effect of free trade zone policy in Shandong province from the current situation of economic development.Based on "the facts" synthesis control of perspective,in 2013-2021 each quarter,shandong province,and so far has not yet set up free trade area of the other eight provinces autonomous region,through the six main macroeconomic dimensions including domestic trade,foreign trade,government fiscal,investment,residents’ living standard,the overall economic benefits to study estimates.The real value and the "counterfactual" value after the establishment of the free Trade zone in Shandong Province were compared,and the difference was taken as the basis to measure the effect of the establishment of the free trade zone on the economic growth of Shandong Province.The empirical results show that the establishment of free trade zone has a positive effect on foreign trade and investment in Shandong Province.It has a certain negative effect on domestic trade and government fiscal in Shandong Province.On the whole,it has a positive effect on the improvement of overall economic benefits and residents’ living standards in Shandong Province,but the effect is not significant in the short term.The study also exposed some problems existing in the free trade zone of Shandong province.Accordingly,some policy suggestions are provided for the next high-quality development of free trade zones in our province,and some references are provided for Shandong province to further strengthen the reform and opening up,and to set up advanced free trade zones with Shandong provincial characteristics.