Abstract:This paper adopts Granger causality test to demonstrate the endogenesis of fruit and vegetable market and constructs the unstructured vector auto-regression model.By the application of the impulse response function and variance decomposition method of analysis,this paper analyzes the mutual substitution relations between fruit and vegetables.The research results are as follows:first,the market consisting of six kinds of fruits and vegetables is an endogenous system; second,there are certain substitute relations between fruit and vegetables,among which the substitute relation between apple and vegetables and that between Chinese cabbage and fruit are stronger; fourth,when the price of a fruit and vegetables is rising,fruit and vegetables having substitute relations will mutually share rising price pressures; finally,the substitution effect of vegetables to fruit is bigger than the other way round.Therefore,this paper draws conclusions that to ensure the mass supply of low price fruit and vegetables is the key to stabilize the fruit and vegetables market,and residents’ “vegetable basket” should be given first priority when making fruit and vegetables market regulation measures.