Abstract This article aims to test causal loop accumulation apply to Chinese industry and summarizes the mechanism of industrial agglomeration causal loop accumulation of new economic geography theory, introduced agglomeration, factor returns and factor mobility to establish PVAR model. By estimation results analysis, impulse response function analysis, this article analyzed the existence of causal mechanism of accumulation cycle, time dimension characteristic of mutual influence between variables, and it is found that as the market economic system is not perfect, too much government intervention in industrial agglomeration and social management system did not match and so on, the second link of process of cause and effect cycle accumulation was broken, causing the level of return cannot effectively guide elements factor mobility, resulting in the accumulation of the causal loop mechanism cannot play an effective role in the process of industrial agglomeration.
2016, Vol. 33 
