Abstract: In order to study the mechanism of mutual development between traffic infrastructure and circulation industry, this paper uses the data of traffic infrastructure and circulation industry development of 30 provinces, regions and municipalities in 2003-2016 to establish panel data model for empirical analysis. The results show that: 1) transportation infrastructure and circulation industry are mutually Granger causality; 2) the short-term fluctuation of circulation industry development has a positive impact on the short-term fluctuation of transportation infrastructure investment, while the short-term fluctuation of transportation infrastructure investment has no significant impact on the short-term fluctuation of circulation industry development; and 3) the interaction level of transportation infrastructure investment and circulation industry development is different and there are big differences across provinces.

Key words: transportation infrastructure, circulation industry, interaction effect, cointegration test