Understanding the Relationship between Transportation and Economic Growth

Abstract

The transportation industry of China is often regarded as the lifeline of national economic growth and the backbone of material activities and community communication, signalizing the development of national economy. Highly- developed transportation industry has important strategic meanings for a country’s economic prosperity, cultural development, strong defense, and people’s well-off life. Based on the grey system theory and econometrics, this paper analyzes the contributing effect of the transportation industry on Xinjiang’s regional economic growth, and studies the relationship between indexes of China’s transportation industry and economic growth, supplying references for researching China’sregional economic development.