A dynamic panel data approach and HCW's method: Assessing the effect of China (Shanghai) Free Trade Zone on local GDP

Cai, Jun; Xin, Kai; Zhou, Yong‐Gui

doi:10.1016/j.jmse.2021.06.004

Cited by 7 publications

(4 citation statements)

References 34 publications

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“…The same conclusion was conveyed by Cai, Xin, et al (2021), by investigating through impact evaluation using pseudo DID decomposition. The results found that FTZ has a positive effect on local GDP growth rates and contributes to GDP per capita growth ranging from one-fourth to onethird of Shanghai's total GDP per capita growth rate.…”

Section: Impact Of Special Economic Zones (Sez) On Economic Growthsupporting

confidence: 60%

“…There is empirical evidence about the benefits of developing SEZs. The existence of SEZs has externalities and spillover effects on the local economy, including an increase in foreign investment, growth in the gross domestic product (GDP), wages, and employment opportunities in the SEZ location or in the surrounding area (Alder, Shao, et al, 2016;Cai, Xin, et al, 2021;Frick and Rodrígues-Pose, 2019;Jones, Li, et al, 2003;Leong, 2013;Pan and Ngo, 2016;Widianto and Yudhisthira, 2021).…”

Section: Introductionmentioning

confidence: 99%

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Evaluation of Special Economic Zone (SEZ) Impact on Economic Growth: Evidence of Simalungun Regency, North Sumatera, Indonesia

Sa’dia,

Fitrady

2023

IRSPSD International

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This study examines the causal effect of the Sei Mangkei Special Economic Zone (SEZ) on the economic growth of Simalungun Regency, North Sumatera using the Synthetic Control Method (SCM). This study uses macro data at the district/city level in Indonesia. The counterfactual in this study was built using a synthetic control unit derived from data from 290 regencies/cities in Indonesia from 2006 to 2020. The results of the analysis conclude that the existence of the Sei Mangkei SEZ has not yet had an economic impact on the economic growth of Simalungun Regency. This finding contrasts with most previous studies which have found that SEZs positively impact the economic growth of the host region. The Sei Mangkei SEZ has not yet had an impact because currently, the utilisation of land and the search for new business actors who are expected to invest in the Sei Mangkei SEZ are still below the target.

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Section: Impact Of Special Economic Zones (Sez) On Economic Growthsupporting

confidence: 60%

Section: Introductionmentioning

confidence: 99%

Evaluation of Special Economic Zone (SEZ) Impact on Economic Growth: Evidence of Simalungun Regency, North Sumatera, Indonesia

Sa’dia,

Fitrady

2023

IRSPSD International

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“…First, a macro perspective, scholars examining the policy effect of the establishment of PFTZ have used empirical analysis methods such as counterfactual analysis, synthetic control, and DID to evaluate the economic effect of PFTZ construction. They have revealed that institutional dividends released with the construction of PFTZ have effectively stimulated regional economic growth (Cai et al, 2021 ; Huang et al, 2017 ; Wang, 2013 ; Zheng et al, 2016 ; Zhang et al, 2018 ), facilitated the free flow of international capital (Yao and Whalley, 2015 ; Yao and Whalley, 2016 ; Chen et al, 2021 ), reinforced the spillover effect of regional knowledge (Li et al, 2020 ), promoted the development of e-commerce industry (Yang et al, 2021 ), maintained the sustainable development of regions (Liu et al, 2021a , b ), and elevated the efficiency of port operation (Liu et al, 2021a , b ; Fan et al, 2022 ). From a micro perspective and based on the previous analysis that focused on the regional port operation efficiency impact of PFTZ construction, Li et al ( 2021a , b ) further shed light on the effects of the construction of PFTZ on the performance of listed companies and conducted empirical researches using the DID method on it.…”

Section: Literature Reviewmentioning

confidence: 99%

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

Wang

et al. 2022

Environ Sci Pollut Res

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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.

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“…In terms of economic growth, Waugh and Ravikumar (2016) studied the content of trade agreement policies and the measurement of trade openness, respectively, and concluded that PFTZs can promote regional economic development by introducing foreign investment and increasing the scale of trade [16]. Chen et al (2018) examined the impact of PFTZs on regional economic development by establishing a development performance assessment system to evaluate the development performance of six typical free trade ports in coastal areas of China and concluded that the establishment of PFTZs can significantly affect regional production performance [17], while Zheng et al (2016) and Cai et al (2021) demonstrated that the construction of PFTZs would realize the release of institutional dividends and promote regional economic growth [18,19]. In terms of industrial development, Zhao et al (2022) used the construction of PFTZs as a quasi-natural experiment to assess the industrial structure upgrading effect of PFTZs using the DID method and came up with the result that the construction of PFTZs exerted a significant positive influence on the upgrading of urban industrial structure [20].…”

Section: Literature Reviewmentioning

confidence: 99%

Does the Green Development of Cities Need High-Level Opening Up? A Quasi-Natural Experiment Based on China’s Pilot Free Trade Zone

Bei

Chen

et al. 2023

Sustainability

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The contradiction between urban open development and the environmental pollution of cities becomes increasingly serious. People begin to pay attention to the green development effect of Free Trade Zones. Based on 278 prefecture-level cities in China from 2009 to 2019, we use the time-varying DID method with the implementation of PFTZ establishment policy as a quasi-natural experiment to explore whether the green development of Chinese cities needs high-level opening up. The main findings of this paper are as follows: (i) Compared with cities without PFTZs, the environmental pollution composite index (EPI) of cities with PFTZs decreases significantly by 5.278% on average; that is, the establishment of PFTZs significantly improves the green development level of those cities. (ii) After the establishment of PFTZs, the green development level of Chinese coastal cities will be enhanced to a greater extent than that of inland cities. In addition, the higher Chinese cities are in the urban hierarchy, the more they can grasp the development opportunities from the establishment of PFTZs. (iii) The establishment of PFTZs effectively reduces the EPI and significantly improves the green development level of cities through three paths: the scale effect, the structure effect and the technology effect. This paper provides micro-empirical evidence for literature related to the environmental benefits and green development of PFTZ construction and provides a reference for most developing countries to learn from China’s experience.

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A dynamic panel data approach and HCW's method: Assessing the effect of China (Shanghai) Free Trade Zone on local GDP

Cited by 7 publications

References 34 publications

Evaluation of Special Economic Zone (SEZ) Impact on Economic Growth: Evidence of Simalungun Regency, North Sumatera, Indonesia

Evaluation of Special Economic Zone (SEZ) Impact on Economic Growth: Evidence of Simalungun Regency, North Sumatera, Indonesia

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

Does the Green Development of Cities Need High-Level Opening Up? A Quasi-Natural Experiment Based on China’s Pilot Free Trade Zone

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