Bo-Back-N ARQ is widely used in packet networks for error and flow control methanisms. This paper analyzes the network throughput under the go-back-N schem. Contrast to other analytic methods which assume independent frame losses or the first order Markov frame analytic methods which assume independent frame losses or the first order Markov frame losses concoptually, the proposed method takes into account the correlation between successive frame losses in a congested node. Computer simulation shows that our method generates more accurate performance results that independent assumption method. We apply the proposed method to analyze the performance of BWM in high speed networs. Our results show that BWM maintains the independence between traffic streams.