Abstract: The fundamental purpose of supply-side structural reform is to improve the level of social productivity. It needs to be demand-oriented, and the orientation characteristics of different regions are different. Based on the development characteristics of China's eastern, central and western regions, the PVAR model was established to compare the differences in the impact of consumer credit and resident wage income on the economic development levels of the three regions of East, Central and West. The research results show that consumer credit plays a positive role in promoting economic development in different regions, and in the short-term, it is more effective than the income level to stimulate economic development, but there are also obvious regional differences. Therefore, it is necessary to guide the development of different types of consumption in a targeted manner, and implement a credit policy that suits the characteristics of different regional economic developments according to local conditions, and set appropriate types of consumer credit and price levels. The supply-side reform should be combined with consumer credit, along with the flow and direction of consumer credit, so as to achieve the improvement of the supply system and the cultivation of high-end consumption, which is emphasized by the report of the 19th National Congress of the Communist Party of China, to achieve a common improvement in supply and demand.
Key words: Consumer Credit; Resident income; Regional difference; PVAR model