Analysis of Stimulating effect on civilian car consumption to economic development: Empirical research of Sichuan Province based on VAR model

Car consumption is becoming a new hot consumption, and automotive industry is positioned as the a pillar industry, therefore it will become a new driving force to boost economic with the health and stable development of China´s national economy. This paper analyzes the stimulating effect on the civilian car consumption to economic development based on the VAR model using temporal series of Sichuan Province from 1990 to 2009, then uses impulse response function and variance decomposition to portray the correlations between economic growth and car consumption. The result shows that there exists a strong positive response between them, and big potential to enhanec the growing of economic.