Research On The Impact Mechanism For The New Urbanization To Stimulate The Potential Of Domestic Demand

New urbanization,on the one hand,as an important hand to expand domestic demand,is an important part of promoting the release of domestic demand potential,giving full play to the advantages of domestic market,reducing external dependence,effectively expanding and better satisfying domestic demand,and continuously opening up a large domestic cycle.On the other hand,as the main carrier of highquality supply system,it has important theoretical and practical significance to stimulate consumption potential,expand investment space,and then build a new development pattern.In this paper,using China’s new urbanization pilot policy as a quasi-natural experiment,the multi-period DID method is used to accurately assess the implementation effect of new urbanization on residents’ consumption and investment levels using national panel data of municipal districts from 2010-2019.And on this basis,the heterogeneity of different consumption and investment levels and the threshold effect of new urbanization in stimulating domestic demand potential under different population sizes are analyzed using quantile regression model and threshold model;finally,the influence mechanism is analyzed by mediating effect model to verify the important roles played by income effect and wealth effect in the process of new urbanization in stimulating domestic demand potential.The research results show that,firstly,the pilot new urbanization has a significant promotion effect on residents’ consumption and investment,while the improvement of residents’ living standard,the development of tertiary industry,the development of financial services and the improvement of ecological environment also play an important role in the release of domestic demand potential.The DID regression results are also further supported by robustness tests such as replacing explanatory variables,PSM-DID sample test,changing the sample period,excluding provincial capitals,placebo test,and TWFE estimator bias diagnosis.Second,the effect tests also indicate that the income effect and wealth effect play a mediating role in stimulating domestic demand potential through new urbanization,and new urbanization can significantly promote residents’ consumption and investment through the income effect and wealth effect.Finally,the effect of new urbanization policy is heterogeneous in cities with different consumption and investment levels,specifically,the pilot policy has a negative effect on low consumption and investment cities,while it has a significant promotion effect on cities with higher consumption and investment levels;at the same time,the pilot policy of new urbanization is also heterogeneous in terms of city population size,i.e.,the pilot policy of new urbanization in small and medium-sized cities has a suppressive effect on At the same time,there is heterogeneity in the population size of cities,i.e.,in small and medium-sized cities,the new urbanization pilot policy has a certain inhibitory effect on residents’ consumption and investment,while in mega cities,the policy promotion effect is more obvious.Based on this,this paper proposes policy recommendations from three perspectives: optimizing the spatial layout and shape of new urbanization,making efforts to improve the mechanism of urban-rural integration and development,and accelerating the citizenship of the agricultural transfer population.