Using data from statistical yearbook from 1978 to 2007, the authors construct a VAR model consist of variables of consumption structure, income level of urban residents, secondary industry and tertiary industry. The empirical method of VAR model is used to study on the dynamic characteristic and interaction relationship between consumption structure and industrial structure. By means of model specification, Granger causality test, variance decomposition and cointegration test, the results indicate that consumption structure can affect secondary industry upgrading. Furthermore, income of urban residents and industrial structure has two-way causality. That indicates in Jilin province, we should raise income level of urban residents to promote industry and consumption upgrading.
