Abstract: There were great significance on narrowing the gap between urban and rural areas， promoting farmers income and achieving sustainable economic development. There were many factors which affecting rural economic growth and these factors were complicated. Econometric models of rural economic growth and circulation industry had been established. Numerical relationship and mechanism were analyzed based on the data of 1985-2009. The results showed that rural employment structure， rural capital and labor input， rural human capital and rural circulation development played the positive role in promoting the economic growth， rural human capital， rural capital and rural employment structure were significant， while rural labor input and circulation development were not significant. Based on the theory and practical study， rural circulation development should be improved. Finally， suggestions such as speeding up construction of rural commodity distribution network， focusing on the development of rural chain store， developing modern procurement and distribution centers were put forwarded.

Key words: rural circulation industry, rural economic growth, econometric study, Zhejiang