A Study on Urban Development under the Policy of Inland Free Trade Zones

The Free Trade Zone (FTZ) serves as an important experimental farm for China’s deepened reform and opening up, significantly promoting country’s economic growth. This research analyzes panel data gathered from China's inland cities between 2015 and 2020 to examine the effects of inland FTZs on regional growth. By measuring per capita GDP and employing the difference-in-differences (DID) method, the study examines policy effects in establishing inland FTZs on these cities. The findings reveal that the creation of inland FTZs significantly boosts the growth rate of urban per capita GDP. Additionally, this paper presents policy recommendations for the development of inland-type FTZs: optimizing the internal spatial structure of FTZ cities, playing a radiation-driven role of FTZ cities, and implementing institutional innovation and promotion within FTZ cities. The aim is to learn from the successful experiences in the development of inland-type FTZs, which provides a reference for the construction of FTZs in other inland regions.