Study On The Influence Of The Establishment Of Pilot Free Trade Zones On Digital Economy

Since the 2008 financial crisis,local trade protectionism has been on the rise,global economic development has been hindered,international economic cooperation has shifted from globalization to regionalization,and the traditional multilateral governance system is being reshaped.As an important member of the international economic system,China,in order to seize a place in the new rules of the international economic and trade system,further promote China’s deepening reform,opening-up and high-quality economic development,officially approved the establishment of the pilot Free Trade Zone by The State Council in August 2013.As the forefront of the current round of opening up and a special economic functional zone,the Free Trade Zone has promoted rapid economic development in the region through a series of preferential policies "within China and outside the customs" and aiming at setting the international standard and high standard of opening up rules.At present,China has set up Free Trade Zones in 21 provinces and municipalities,forming a basic pattern of "1+3+7+1+6+3".According to the existing literature,the establishment of Free Tade Zones has a significant promoting effect on economy,import and export trade,finance,technological innovation and other aspects,and the promoting effect is time-dynamic and regional heterogeneity.Digital economy has become an important engine for high-quality economic development,and major economies in the world have introduced policies to promote its development.In this context,China’s digital economy has developed rapidly,becoming the second largest digital economy country after the United States.Building a high ground for the development of digital economy is an important direction for the development of Free Trade Zones.Then,has the establishment of Free Trade Zones affected the local digital economy? If so,what are the effects? Based on this,this paper studies the development status of Free Trade Zone and digital economy,as well as the mechanism and effect of Free Trade Zone’s influence on digital economy from both theoretical and empirical aspects.The research objectives of this paper are as follows: First,at the theoretical level,to explore the theoretical mechanism and influence ways of the Free Trade Zone to promote the development of digital economy;Second,at the level of empirical test,the specific effects and heterogeneity of the Free Trade Zone to promote digital economy are analyzed,and on this basis,the suggestions and countermeasures of Free Trade Zone to promote the development of digital economy are proposed.This paper firstly analyzes the status quo of Free Trade Zone and digital economy.By sorting out the development history and strategic positioning of Free Trade Zones,as well as the selection and measurement of digital economy related indicators of prefecture-level cities,the status quo of both is analyzed.In the measurement of digital economy,the entropy method is used to measure the data of China City Statistical Yearbook and the statistical yearbook of provinces and cities,so as to compare and analyze the differences in the development of digital economy in different regions.Secondly,in terms of influence mechanism,it analyzes how the Free Trade Zone affects the digital economy through relevant theories.The logical frame of this paper is constructed from the theory to lay the foundation for the next demonstration.In the empirical test part,based on the data of China City Statistical Yearbook from 2011 to 2019,propensity score matching and differential analysis(PSM-DID)model was used to study the impact of the establishment of Free Trade Zones on the digital economy,and to empirically explore whether the establishment of Free Trade Zones has a significant promoting effect on the digital economy.At the same time,the heterogeneity of the research objects was analyzed to investigate the policy effects of different types and batches of Free Trade Zones.The following conclusions are drawn from the empirical test: First,the establishment of the Free Trade Zone plays a significant driving role in the local digital economy.Second,the role of Free Trade Zones in promoting digital economy shows obvious regional heterogeneity.Both the eastern and central Free Trade Zones have promoted the development of local digital economy,with the central region having the largest driving effect.The establishment of coastal Free Trade Zones will promote the digital economy.The Free Trade Zones in 2015 and 2018 have a significant driving effect on the digital economy.To this end,corresponding countermeasures and suggestions are put forward: first,promote the process of digital economy construction in Free Trade Zone.We will enhance the radiating effect of digital economy in Free Trade Zones and help neighboring cities form digital economic city clusters.Second,we will implement a differentiated digital economy development policy for Free Trade Zones.Free Trade Zones in the eastern coastal areas could be given greater autonomy in formulating digital economy policies;The Free Trade Zone in the western region focuses on building digital economy infrastructure,making full use of endowment resources in line with local industrial development,and improving digital economy development policies.Free Trade Zones in the border areas can be built as pilot demonstration zones for ASEAN and Russia,and jointly build the industrial chain of digital economy.