Author(s)

Xinyao LIN ¹

Affiliation(s)

¹ School of Economics, Fujian normal University, Fuzhou, Fujian Province, China

Corresponding Author

Xinyao LIN

ABSTRACT

The relationship between environment and trade is a focus of international economics. Based on the panel data of 285 prefecture-level cities, this paper empirically tests the environmental impact of establishing a free trade zone by using the dual difference method. The results show that: first, the establishment of pilot free trade zones can improve the environment; second, in terms of action mechanism, the increase of green patents and economic agglomeration are the main ways. Because the data samples are not available, this paper did not test all the pilot free trade zones. The construction of pilot free trade zone should give full play to the advantages of industrial agglomeration and increase the investment in green technology research and development. The study on the relationship between the environment of prefecture-level cities and the pilot free trade zone is helpful to realize the sustainable development of China's economy.

KEYWORDS

free trade, free trade pilot zone, environment, economic agglomeration, green patent

CITE THIS PAPER

Xinyao LIN, On the Environmental Effect of Free Trade Zone in China ——Empirical Analysis of DID Model based on Shanghai, Fujian, Guangdong and Tianjin. Financial Engineering and Risk Management (2022) Vol. 5: 38-51. DOI: http://dx.doi.org/10.23977/ferm.2022.050108.

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