Does the Pilot Free Trade Zone Promote the Quality of Urban Economic Growth: An Empirical Research Based on Quasi-Natural Experiment

Abstract

Whether China’s Pilot Free Trade Zone (FTZ) can force market-oriented reforms and improve the quality of economic growth is a major issue related to sustainable development. This paper uses DID method to test the impact of FTZ on the quality of economic growth. The study found that, first, FTZ has promoted the quality of economic growth. Second, FTZ has promoted China’s market-oriented reform through institutional innovation of high-level opening and provided a strong impetus for high-quality economic growth. Third, FTZs in coastal areas, the Guangdong-Hong Kong-Macao Greater Bay Area and the second batch of FTZs have a relatively greater role in promoting high-quality economic growth. Research shows that China’s high-level open institutional innovation can promote market-oriented reforms and effectively promote the goal of economic transformation from high-speed to high-quality.