Abstract:  In general, economic growth may result in different degree of environmental pollution. Thus, it gives rise to a question: whether rapidly economic growth will certainly create severe pollution? Investigation is carried out to answer this question in this paper. With the data collected in Henan Province from 1986 to 2009, the investigation is done as follows. The correlation is verified by cointegration analysis such that correct results can be obtained. Then, generalized impulse response function (GIRF) and variance method are used to analyze the longterm dynamic mechanism between economic growth and industrial pollution. The result indicates that the rapidly economic growth can result in increasingly pollution, while pollution can hinder, with some lag, economic growth. Furthermore, economic growth in the early stage can aggravate the industrial pollution, which will severely hinder the economic growth in return. Based on the results, suggestions are given for coordination between the economy development and the environment protection.

Key words: economic growth, industry pollution, generalized impulse response function (GIRF)