Shanghai Pilot Free Trade Zone: China's Exploration To an Economic Heavyweight Open Access

Li, Yanjie (2015)

Permanent URL: https://etd.library.emory.edu/concern/etds/tt44pn34n?locale=en
Published

Abstract

Abstract

Shanghai Pilot Free Trade Zone: China's Exploration To an Economic Heavyweight
By Yanjie Li

Shanghai Pilot Free Trade Zone (SHPFTZ) was launched on September 29, 2013. The establishment of SHPFTZ is meant to serve as a significant measure to promote reform and opening-up under changing global economic conditions. It also reflects the Chinese Government's commitment to a new system of foreign investment management based upon China's structure of Socialist Democracy.

In light of this development, the paper is aimed at discussing the internal economic and legal impact of the establishment of SHPFTZ after two years' development. The first part of this paper provides a comprehensive understanding of SHPFTZ including its operations, structure, role and functions. The second part will mainly focus on using the Difference-in-Difference, ARIMA and OLS empirical models to analyze the growth of FDI compared with other major cities along the eastern coast of China after the establishment of SHPFTZ. Both DD and OLS models show that the establishment of SHPFTZ attracts more inflow FDI, but the effect is not significant in ARIMA model. More data and research are needed to testify the applicability of creating FTZ in other cites.

Table of Contents

Table of Contents

Content

1. Introduction

1

2. Literature Review

3

3. Data Analysis

7

4. Empirical Methodology

10

5. Results

24

6. Conclusions

35

7. References

37

8. Appendix

40

List of Tables

a. Major Measures for The Financial Sector Reform (Wan, 2014)

6

b. Dickey-Fuller General Least Squares for FDI

40

c. Augmented Dickey-Fuller Test For Unit Root

41

d. LM test for autoregressive conditional heteroskedasticity (ARCH)

42

e. Shanghai and Reference Cities: Realized FDI, Total Import and

43

Total Output Before and After the Establishment of SHPTFTZ

f. OLS Estimates for the ln(FDI) Using DD Model

44

g. OLS Estimates for the ln(FDI) Using ARIMA (3,1,1), Time And Dummies

45

h. AIC and SIC Values, Various Autoregressive Models

46

i. OLS Estimates of Errors On Its Lag Values

46

j. OLS Estimates of Errors On Its Lag Values

46

k. White's Test for Heteroskedasticity

46

l. OLS Estimates for the ln(FDI) Using Linear Multiple Regressions

47

List of Figures

a.The FDI in Levels From 01/2009 to 10/2015

48

b.The First Difference of FDI From 01/2009 to 10/2015

48

c. GARCH Residual

49

About this Honors Thesis

Rights statement
  • Permission granted by the author to include this thesis or dissertation in this repository. All rights reserved by the author. Please contact the author for information regarding the reproduction and use of this thesis or dissertation.
School
Department
Degree
Submission
Language
  • English
Research field
Keyword
Committee Chair / Thesis Advisor
Committee Members
Last modified

Primary PDF

Supplemental Files