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The Impact of AI Development on Urban Residents’ Consumption Potential: Evidence from a Quasi-Natural Experiment in China’s Next-Generation AI Innovative Development Pilot Zones

Author(s)

Chang Liu*, Jili Liu

Affiliation(s)

School of Economic, Beijing International Studies University, Beijing, China * Corresponding Author

Abstract

This study investigates the impact of artificial intelligence (AI) development on the consumption potential of urban residents. A quantitative indicator system is constructed across three dimensions: consumption capacity, consumption expenditure, and the consumption environment. Taking the phased establishment of AI Innovative Development Pilot Zones since 2019 as a quasi-natural experiment, the study utilizes panel data from 290 Chinese cities spanning 2015 to 2022. A multi-period difference-in-differences approach, combined with fixed effects models, is employed for empirical analysis. The results reveal that AI development has a significant and sustained stimulating effect on urban residents’ consumption potential. This study broadens the existing research on the economic effects of AI. It also provides empirical support for efforts to stimulate domestic demand, improve and expand consumption quality, and foster a new development paradigm driven by consumption.

Keywords

Artificial Intelligence (AI); AI Innovative Development Pilot Zones; Urban Residents’ Consumption Potential

References

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