Analyzing economic concentration situation of Yangtze River Delta and the eastern coast area, we find the endogenous mechanisms of economic concentration and the significant role of economic concentration to productivity, from the perspective of the new economic geography. First of all, we focus on D-S model and OTT model, and analyze centripetal force and centrifugal force which lead to economic concentration and diffusion, through local market effect, price index effect, market crowding effect. On this basis, we discuss about China's applicability of these foreign theories, and assume that capital flows plays a key role in China's economic concentration mechanism. Secondly, we analyze the economic history and economic development of the Yangtze River Delta. On this basis, we analyze concentration and diffusion of industry, capital, labor on the Yangtze River Delta and the eastern coast area, and find an economic diffusion to the two wings on the Yangtze River Delta and the eastern coast area both. Then, analyzing statistical data of 25 prefecture-level cities on the Yangtze River Delta, we proof that regional economy concentrate mainly through capital flows, while economic agglomeration significantly increases regional labor productivity. Finally, we move forward to check the situation of the eastern coast area which contains the Yangtze River Delta, the Beijing-Tianjin-Tangshan area, the Pearl River Delta, further evidence proof that China's economy concentrate mainly through capital flows, while economic agglomeration significantly increases regional labor productivity. |