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Taking the construction of smart city in Yantai as an opportunity, this paper analyzes the current situation of foreign trade under the background of free trade agreement, explores the main factors affecting the level of trade, and puts forward feasible Suggestions for the development of foreign trade in Yantai based on the construction of smart city. Through the analysis of the trade flow between Yantai and 13 major trading countries(regions), the time-varying attenuation stochastic frontier gravity model is constructed to explore the main factors affecting Yantai’s foreign trade, and the total trade efficiency of Yantai is analyzed. The research shows that the total trade efficiency presents an overall increasing trend, and the trade and population size of Yantai have a significant impact on the trade flow. In the process of building a smart city, the planning and integration of Yantai’s foreign trade should be carried out from various aspects to further improve the trade efficiency.

Empirical Analysis on Foreign Economic Trade of Smart City under the Background of Free Trade Agreement