Proceedings of the 4th International Conference on Economy, Judicature, Administration and Humanitarian Projects (JAHP 2019)

The Promotion Effect of China (Shanghai) Pilot Free Trade Zone Policy on Foreign Investment Based on Nonparametric Synthetic Control Method

Authors
Qicai Huang
Corresponding Author
Qicai Huang
Available Online September 2019.
DOI
https://doi.org/10.2991/jahp-19.2019.103How to use a DOI?
Keywords
program evaluation; nonparametric synthetic control method; China (Shanghai) Pilot Free Trade Zone; FDI effect
Abstract
This paper uses the Nonparametric Synthetic Control Method to study the dynamic impact of free trade zone (FTZ) policy on attracting foreign direct investment (FDI) by taking the Shanghai pilot free trade zone as a case. Empirical results show that the pilot free trade zone policy increased the stock of foreign direct investment in Shanghai by 205.26 billion Yuan from 2013 to 2015, with an average annual spillover of 68.42 billion Yuan, and an average annual spillover rate of 14.2 percent; and the cumulative flow of foreign direct investment in Shanghai increased by 133.06 billion Yuan, with an average annual spillover of 44.35 billion Yuan and an average annual spillover rate of 116.2 percent. A series of robustness tests, such as synthetic control method and double difference method, show that the pilot free trade zone policy has a positive spillover effect on attracting foreign investment in the region, and the empirical conclusion is robust.
Open Access
This is an open access article distributed under the CC BY-NC license.

Download article (PDF)

Cite this article

TY  - CONF
AU  - Qicai Huang
PY  - 2019/09
DA  - 2019/09
TI  - The Promotion Effect of China (Shanghai) Pilot Free Trade Zone Policy on Foreign Investment Based on Nonparametric Synthetic Control Method
BT  - The 4th International Conference on Economy, Judicature, Administration and Humanitarian Projects (JAHP 2019)
PB  - Atlantis Press
SN  - 2352-5428
UR  - https://doi.org/10.2991/jahp-19.2019.103
DO  - https://doi.org/10.2991/jahp-19.2019.103
ID  - Huang2019/09
ER  -