Research on the Heterogeneity Impact of Economic Policy Uncertainty on the Economic Development of Important Cities in the Yellow River Basin

This article uses the panel data of the major cities in the Yellow River Basin and China’s economic policy uncertainty (EPU) index from 1996 to 2019, and uses the PVAR model to study the heterogeneous impact of EPU on the economic development of major cities in the Yellow River Basin. Through empirical analysis, it is found that EPU has a significant negative effect on the economic growth and industrial of different cities, but the impact is different, with significant changes from the upper, middle, and lower reaches of the Yellow River Basin. In terms of fixed asset investment and national consumption, the influence of EPU index in different regions is diametrically opposite. To achieve the goals during the “14th Five-Year Plan” period, namely, ecological protection and high-quality development in the Yellow River Basin, not only should we pay attention to macroeconomic policy regulation, but also the negative effects caused by policy uncertainty and discontinuity.