In order to impel local railroad freight transportation to adapt the development of market economy, and help local railroad freight transportation to distinguish circumstances and correct market localization, with the aid of the measure economic model, the paper analyzes relations between local railroad freight transportation and region economy, from the macro- environment lay, adopting HeNan Province's historical data, the article carries Granger causality method to examination the relation between local railroad freight transportation and region economy, and through variance decomposition method to test this kind of causal relation intensity. The main conclusions of this study are that there is evidence of bi-directional causality between local railroad freight transportation and region economy in HeNan Province; in the short-term, the region economy to freight transportation of local railroad's influence is bigger than freight transportation of local railroad to region economy's influence; Looked for a long time, freight transportation of local railroad to region economy's influence is bigger than region economy to freight transportation of local railroad's influence.