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Has the Free Trade Zone Construction Promoted the Upgrading of the City’s Industrial Structure?

Author

Listed:
  • Aiwu Zhao

    (School of Management Science and Engineering, Shandong University of Finance and Economics, Jinan 250014, China
    Institute of Marine Economics and Management, Shandong University of Finance and Economics, Jinan 250014, China)

  • Jingyi Wang

    (School of Management Science and Engineering, Shandong University of Finance and Economics, Jinan 250014, China)

  • Hongjun Guan

    (School of Management Science and Engineering, Shandong University of Finance and Economics, Jinan 250014, China
    Institute of Marine Economics and Management, Shandong University of Finance and Economics, Jinan 250014, China)

Abstract

Based on the panel data of 250 prefecture-level cities from 2006 to 2019, we adopted the idea and method of a “quasi-natural experiment” with difference-in-difference to assess the industrial-structure-upgrading effect of FTZ construction, analyze the factors and mechanisms influencing the effect, and further compare and analyze the regional heterogeneity and differences in spatial and temporal characteristics. We also propose policy recommendations to promote the orderly development of the FTZ. Empirical results show that, (i) compared with non-FTZ cities, the level of rationalization for industrial structures in FTZ cities increased by 9.69%, and the level of the advanced industrial structures increased by 7.01%. (ii) The innovation effect and the foreign investment effect enhance the effect of FTZ policy on industrial structure upgrading. (iii) Heterogeneity analysis found that the eastern and central FTZ have more significant roles in promoting industrial structure upgrading. (iv) Further spatial and temporal comparison analysis found that the promotion effect of the FTZ on industrial upgrading is temporally sustainable but with a certain lag. From the spatial perspective, the FTZ inhibits the level of advanced industrial structure in neighboring cities.

Suggested Citation

  • Aiwu Zhao & Jingyi Wang & Hongjun Guan, 2022. "Has the Free Trade Zone Construction Promoted the Upgrading of the City’s Industrial Structure?," Sustainability, MDPI, vol. 14(9), pages 1-21, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5482-:d:807767
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    References listed on IDEAS

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    Cited by:

    1. Guan, Chenghua & Huang, Jinyuan & Jiang, Ruyue & Xu, Wanting, 2023. "The impact of pilot free trade zone on service industry structure upgrading," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 472-491.

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