How does high-level institutional openness promote enterprise internationalization? Empirical evidence from China’s pilot free trade zones

In the context of the new era, high-level institutional openness has become a crucial external driving force for China's external circulation development, and an important strategic support for enterprises to move towards internationalization. This article uses micro level data from 2011 to 2022 at the enterprise level and employs a dual machine learning model to empirically analyze the impact of high-level institutional opening-up policies, represented by China's pilot free trade zones, on the internationalization development of enterprises. The research results show that the policies of the pilot free trade zone have significantly promoted the level of international development of enterprises, manifested in positive performance in terms of internationalization depth, breadth, and whether internationalization has been initiated. There are significant differences in the impact of policies in pilot free trade zones on the international development of different types of enterprises, with private enterprises and manufacturing enterprises having more significant effects. Mechanism testing shows that the policies of the pilot free trade zone have effectively promoted the international development of enterprises by assisting them in improving their technological innovation level, optimizing ESG performance, alleviating financing constraints, and strengthening inward connections. This study has certain policy reference value and significance for further demonstrating the effectiveness of high-level institutional openness in promoting external circulation.