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Based on the idea of Feder(1982), this paper establishes a two-sector model which includes circulation sector and non-circulation sector to examine the influence mechanism of circulation Industry development to economic growth.The empirical study of the nationwide sample shows: there are significant positive relationship between circulation industry development and economic growth, and the circulation industry development is the Granger causes to economic growth.Meantime, the paper chooses the panel unit root test and cointegration test to analyze and compare with the difference and effectiveness of circulation industry development to regional economic growth for 31 regions during 1978~2009 period, based on the analysis above, this paper proposes some countermeasures.