Abstract

Agglomeration Economic Circle is an important carrier for a nation to participate in international economic competition.To develop Agglomeration Economic Circle can helpto promote industry agglomeration and strengthen national competitiveness.However，based on literatures about industry agglomeration，like the literatures about the laws of power，effects and evolution of industry agglomeration，the author discovered that the above topics can be extendedly studied.As a matter of fact，these extended researches can contribute to，theoretically and empirically，the development of Regional Economics theory as well as the practice of Agglomeration Economic Circle.

Since China's reform and opening-up，the fast economic growth and industry agglomeration for almost30years in the Yangtze River delta have offered an empirical sample and a model of development for studying the laws of formation，development and evolution of Agglomeration Economic Circle.

Based on the industry agglomeration of Agglomeration Economic Circle and the correlation among the region，industry and industry agglomeration，this book mainly studies the inherent laws of industry agglomeration during the process of its formation，development and evolution，such as its power，effects and evolution.And at the same time this book elaborates the relevant theoretical system concerning industry agglomeration of Agglomeration Economic Circle and the law of evolution.The research logic route of this book is that factor endowments comparative advantage of territory comes first，followed by the government's push，endogenous industry agglomeration，agglomeration effect and dynamic evolution.

This book is divided into five parts，including eight chapters.

Part1is the introduction part.Though there are many theoretical researches about industry agglomeration，it is necessary to research further the industry agglomeration.To study the laws of power，effects and evolution of Agglomeration Economic Circle，the authorneeds to compare various theories，find out the current limitations and pinpoint the direction of future researches，which constitute the first part of this book，Chapter1.Chapter1first elaborates the background information and meaning of this study and summarizes related literatures about the power，mechanism，effects，measurement and evolution of industry agglomeration so as to know the limitations clearly.Secondly，it also defines the concepts of Agglomeration Economic Circle，industry agglomeration and factor endowments advantage of territory.Thirdly，it elaborates the research objectives，research contents，research methods and research framework.

The second part of this book studies the power of industry agglomeration of Agglomeration Economic Circle，including chapter2and chapter3.The two chapters study the source power and external power of industry agglomeration respectively in the analysis framework of factor endowments advantage of territory as well as systemic analytical methods

The third part including chapter4and chapter5，analyzes the agglomeration effect of industrial agglomeration of Agglomeration Economic Circle.Through theoretical and empirical study，it analyses six types of industry agglomeration effects，including the effect of territory economic development and technical progress，the effect of Solow Residual Increasing and Scale-Return Decreasing of Agglomeration Economic Circle，and the effect of unbalanced development and the effect of the industrial isomorphism in Agglomeration Economic Circle which were caused by some factors such as point-axis economy growth and fiscal decentralization.

Based on the perspective of the Agglomeration Economic Circle，Part four，which consists of chapter6and chapter7，analyzes some problems，such as the industry cluster transformation and diffusion，industry agglomeration competition and transfer in sub-region of Agglomeration Economic Circle，and promotion of the competitive ability of Agglomeration Economic Circle.

The fifth part summarizes the related conclusions of previous chapters，deepens this research topic，emphasizes the theory significance of this research，and practice significance on the economic development of countries in the world，especially on the implementation of China's current economic development of the central and the western region.This is in Chapter8.

The contents of each chapter of this book are relatively independent，but also closely connected，constituting the theory system of agglomeration and evolution of economic circle.The industry agglomeration research content of Agglomeration Economic Circle includes the three aspects：agglomeration power，agglomeration effect and agglomeration evolution，which differ from each other and are often intertwined.The industry agglomeration depends on the agglomeration power.Once the industry agglomeration is launched by the agglomeration power，it will change the development environment of territory economy，facilitating the territory technical progress，improving the industry space structure and performance of agglomeration，and resulting in the industry and space evolution of agglomeration，which makes up part content of agglomeration effect of Agglomeration Economic Circle in some sense.

Compared with literatures，this book may contribute to innovations in following aspects：

（1）Innovation of research perspective

Literatures don't examine the agglomerationforce，effect，and evolution characteristics of Agglomeration Economic Circle，which play a core in core-periphery system，from the perspective of the Agglomeration Economic Circle and its factor endowments advantage.This book studies agglomeration power、effects and evolution characteristics from the perspective of the Agglomeration Economic Circle and its factor endowments advantage，so it grasps the industry agglomeration laws of Agglomeration Economic Circle better.The conclusion is different from those literatures interpreting it by the contingency disturbance，externality or regional innovation.

（2）Innovation of research contents

①This book proposes the inverse embedded concept.On the basis of this concept，this book discusses the driving force of industry agglomeration，which believes the source power of industry agglomeration comes from the territory factor endowments comparative advantage.The advantage of division of production roots in the territory heterogeneity comparative advantage of factor endowments in the double open world market and the dual international division of production，such as human capital，technical capital and physical capital.

②It provides an analysis structure of a capable government to analyze the external power of industry agglomeration of Agglomeration Economic Circle.It believes that through policies the government changes the external environment of Agglomeration Economic Circle industry，thus changing the use and development direction of its factor endowments，exploiting comparative advantages of territory factor endowments in international division of production，and enhancing the agglomeration of Agglomeration Economic Circle.A conclusion can be drawn that government acts as an external power for the agglomeration of Agglomeration Economic Circle.This is different from the partial analysis of literatures on the role played by government in promoting agglomeration，which consider that the government's impact on agglomeration is uncertain or with strict constraints.

③Based on the neoclassical analysis framework about economic growth，this book puts forward a monopolistic competition growth framework，which，according to time data and from a macro growth perspective，analyzes the territory development effect of industry agglomeration in Agglomeration Economic Circle.It believes that the industry Agglomeration can bring three effects，including economic development，technical progress，and market competition.Unlike some conclusion on agglomeration efficiency related to new economic geography，this book proposes and demonstrates increasing Solow Residual of agglomeration region is the function of market competition degree，and there is not necessarily increase in scale returns in the course of industry agglomeration.

④Based on the sub-urban heterogeneity factor endowments comparative advantage and combining analyzing tool of convergence，Gini index and Taylor index，this book interprets sub-regional space black box of of point-axis growth characteristics of industry agglomeration in the Agglomeration Economic Circle.Meanwhile，based on the discrepancy of industrialization process，it studies mechanism of industrial isomorphism in the Agglomeration Economic Circle.According to the author，the industry agglomeration process of agglomeration economic circle is non-balanced growth process and the existence of urban income gap is reasonable，which reflects point-axis characteristics of economic growth，there are no‘absolute’absolute convergence and conditional convergence.

⑤Unlike those literatures emphasizing that unilateral industrial cluster competition causes resource shortage，or factors as institution locking and route dependence give rise to decline of cluster industry，the book proposes，against the world Globalization，there is relationship of changing from coordination to excluding each other in development of plural cluster industry of Agglomeration Economic Circle.Agglomeration competition of industrialization process，industrial structure evolution，and plural cluster industry in Agglomeration Economic Circle is the main reason for promoting value chain of low-end section of low-level cluster industry of Agglomeration Economic Circle to spreading outside and its structural transformation.And the development of cluster industry needs to comply with this trend.

⑥improving location quotient statistical method，this book proposes the judgment method of“location quotient-industry department increase rate”dominating industry.Based on that，this book put forwards and demonstrates reverse-U the evolution hypothesis and proposes the agglomeration theory of sub-region dominating industry in Agglomeration Economic Circle.According to the author，the key about competitive promotion of Agglomeration Economic Circle of high-speed growth mainly lies in complying with the reverse-U evolution principle of the sub-region dominating industry and the discrepancy in industrialization process in sub-region，transferring dominating industry in sub-region in accordance with Flying Geese Model.

（3）Innovation of research methods

①Based on the analysis framework of the comparative advantage of factor endowments in dual international division of production system and systematical analysis methods，this book analyzes agglomeration power，effects and evolution characteristics of Agglomeration Economic Circle.

②Through cost-return analysis framework and introducing population competition model，this book reveals the internal driving mechanism，transformation route and transformation conditions of cluster industry from coordination development to spreading transformation in Agglomeration Economic Circle.

Keywords：Industry agglomeration；Agglomeration Economic Circle；Agglomeration law；Agglomeration effect；Agglomeration evolution