Research on Relevancy between Circulation Industry and National Economy Based on Canonical Correlation Analysis

Circulation industry has already become an important part of national economy of China. Applying the method of canonical correlation analysis, this paper studies the relevancy between circulation industry and the others of national economy of China empirically. The author finds that circulation industry has strong pulling effects on other industries of national economy and that GDP of national economy increases 0.1363% with circulation industry advancing 1%. Moreover, the contribution of wholesale and retail industries is the highest. The primary industry has a lowest relevancy with circulation industry. The result provides the decision basis for developing circulation industry.