A Study of the Impact of Establishing a Pilot Free Trade Zone on the Competitiveness of Chinese Enterprises

This paper focuses on the impact effect of the pilot free trade zone on the competitiveness of equipment manufacturing enterprises, using the multi-period double-difference method, using the data of listed enterprises in the equipment manufacturing industry from 2008 to 2020. The conclusion of the study shows that the establishment of a pilot free trade zone can significantly enhance the competitiveness of high-end equipment manufacturing enterprises, mainly by expanding the scale of enterprise investment and alleviating enterprise-financing constraints. The heterogeneity test shows that the promotion effect of the establishment of the Pilot Free Trade Zone on the development of the competitiveness of equipment manufacturing enterprises is more significant in the sample groups of central and western regions and state-owned enterprises. In the future, it is necessary to make use of the advantages of the Pilot Free Trade Zone system, expand opening up to the outside world, strengthen financial co-operation, create a good business environment, increase the coverage of the Pilot Free Trade Zone policies, and promote the balanced development of the eastern, central and western regions.