Have China's Pilot Free Trade Zones Improved Green Total Factor Productivity?

Research on the impact of pilot free trade zones on urban green development: A case study based on the Yangtze River Economic Belt in China

Green development is an important component of China's new development concept. Pilot Free Trade Zones (PFTZs), as "experimental fields" for promoting reform, deepening opening-up, and raising the level of an open economy, are important open areas for China to promote green development. However, existing related research is not extensive. This article takes PFTZs as quasi-natural experiments, with the Yangtze River Economic Belt (YREB) as the research area. Based on urban panel data from 2006 to 2020, using multi-period differences-in-differences and spatial differences-in-differences models, it explores the impact effects of PFTZs on urban green development and their potential mechanisms. The research findings indicate: (1) Overall, PFTZs significantly promote urban green development, with variations in impact effects due to different batches and locations of establishment. (2) Mechanism tests show that PFTZs mainly promote urban green development by stimulating technological innovation, industrial upgrading, and reducing government intervention. (3) From the perspective of spatial spillover effects, the establishment of PFTZs not only promotes the green development process in the host cities but also has a promoting effect on the green development of surrounding cities.

Environmental effects of the establishment of pilot free trade zones: evidence from Chinese resource-based enterprises

The establishment of pilot free trade zones (FTZs) is a key strategic measure taken by China to promote high-quality economic development, but there are still gaps in the research on how the establishment of FTZs affects the environmental performance of enterprises from a micro perspective. Using data from China's Shanghai and Shenzhen A-share resource-based listed enterprises from 2010 to 2020, this paper uses the difference-in-difference model to examine the impact of the establishment of FTZs on the environmental performance of enterprises. The study finds that after the city that the enterprise located is set up as a free trade zone (FTZ), enterprises' environmental performance has been significantly improved, and this effect has a continuous positive impact. As far as the influence mechanism is concerned, the main driving forces for the establishment of FTZs are technology effect, competition effect, and resource allocation effect, which are embodied in the significant improvement of enterprises' green technology innovation, total factor productivity, and environmental protection investment. The environmental performance of non-state-owned and large-scale resource-based enterprises is more prominently affected by the establishment of FTZs. In capital-intensive industries and the eastern region, the environmental performance improvement effect of the establishment of FTZs is more obvious. This study provides targeted suggestions for resource-based enterprises to effectively implement the environmental green development strategy.

Do China's pilot free trade zones promote green dual-circulation development? Based on the DID model

Accelerating the formation of a green dual-circulation pattern is an essential strategic choice for China to achieve high-quality development. As a vital link for two-way economic and trade cooperation, the pilot free trade zone (PFTZ) is an important window for promoting green dual-circulation development. From the perspective of green dual-circulation, this paper attempts to construct a comprehensive index system of green dual-circulation by entropy weight method based on Chinese provincial panel data from 2007 to 2020 and uses the Propensity Score Matching-Difference in Differences method to test the policy impact of PFTZ building on regional green dual-circulation. The empirical results show that: (1) the establishment of PFTZs significantly promotes regional green dual-circulation development by 3%-4%. This policy effect has a strong positive impact on the eastern regions; (2) PFTZs can improve regional green dual circulation through the effect of green finance, technological progress, and the agglomeration of innovative talents. The mediating effect of green finance and technological progress is more pronounced; (3) The promotion effect of PFTZs is primarily due to the local green circulation effect, with no significant effects on the surrounding areas; and (4) There is a positive policy linkage effect between PFTZs and the Belt and Road Initiative. This study creates the analytical perspective and empirical support for assessing the policy impact of PFTZs and provides management insights for PFTZ policymakers in promoting green dual-circulation development.

Do pilot free trade zones improve the green total factor productivity? Evidence from a quasi-natural experiment in China

China's pilot free trade zone (PFTZ) is an important national strategy to achieve high-quality development, so it is necessary to discuss the effect of PFTZ implementation on green total factor productivity (GTFP). Based on the data from 279 cities in China from 2004 to 2018, this study takes the establishment of PFTZ as a quasi-natural experiment and uses the difference-in-differences (DID) method to systematically evaluate the effect of PFTZ on urban GTFP. The empirical results of this paper are shown as follows: Firstly, the construction of PFTZ has a significant effect on urban GTFP, and this effect has increased gradually over time. Secondly, the construction of PFTZ mainly promotes the urban GTFP by increasing the level of science and technology innovation, reducing government intervention and improving the level of human capital. Thirdly, the effect of PFTZ construction on GTFP is more pronounced in regions with earlier waves of PFTZ and in western regions where environmental concerns are higher. In addition, there is a significant positive linkage between the construction of the PFTZ and the Belt and Road Initiative to improve the urban GTFP. The findings of this paper enrich the relevant literature on PFTAs and sustainable development and provide a theoretical basis for further promotion of PFTZ construction.

Does Regional Development Policy Promote Industrial Structure Upgrading? Evidence from the Yangtze River Delta in China

The “Regional Development Plan of the Yangtze River Delta (YRD)”, or the “YRD Development Policy”, is a national policy of China aimed at promoting industrial structure upgrading and the high-quality development of the regional economy in the YRD. To test the implementation effect of this policy, this work applied the synthetic control method (SCM) to explore the impact of the YRD Development Policy on industrial structure upgrading in the YRD based on 15-year panel data of 30 provinces in mainland China. The results showed that, as a whole, the implementation of the YRD Development Policy has contributed to industrial structure upgrading in the YRD. The trend of industrial structure upgrading is more rapid in the original YRD than in the new YRD. From a local perspective, the YRD Development Policy has hindered the upgrading of the industrial structure in Anhui Province but promoted upgrading in the rest of the YRD. From a long-term perspective, the effectiveness of the YRD Development Policy is limited, presenting a clear N-shaped development trend. In terms of industrial structure changes, the impact of the YRD Development Policy on the three types of industries in the YRD shows obvious regional differences. Furthermore, economic development, urbanization, and technology innovation have a significant and positive impact on the industrial structure upgrading of the YRD. These findings have policy-making implications, enrich the research on the impact of the YRD Development Policy on industrial structure upgrading, and provide empirical reference for subsequent policy improvements.

A Knowledge Map Study of an Application of a Smart Land Planning Free-Trade Zone and China’s Contribution

The use of a free-trade zone (FTZ) has emerged as a smart land tool in increasing trading, attracting foreign investment, attempting financial openness and conducting other pilot economic reforms, which adds higher requirements for smart spatial planning, smart industry planning and smart management planning. However, no systematic analysis has been performed, making it difficult to provide deeper insights into FTZs. Thus, this study conducted bibliometric and visual analysis to identify the research status, new theories or practices, and potential future directions of FTZs based on 953 publications from the Web of Science Core Collection. The results show that there is a marked rise in the number of FTZ studies since 2013, which is the same year China authorized the first FTZ in Shanghai. China and the United States of America have played a leading role in FTZ research. Finally, the increasing trend in FTZ utilization will remain sizeable during its deepening development. The findings may contribute to a better understanding of FTZs and make some references to smart land-use planning experience and practices around the globe.