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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.

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