Abstract: Agglomeration economies will produce agglomeration effect or congestion effect,which including economies of scale and scope two forms.The article select agglomeration effect and congestion effect as the breakthrough point,combined with Combined with C-D production function and CES function setted withArrow,we introduce agglomeration into production function to influence TFP and labors,which puts forward that agglomeration effect or congestion effect would have influence on industrial growth by influencing TFP or labors.On this basis,we use specialization index and diversity index as agglomeration economies of scale and scope,then we use fixed effect panel model and system GMM model to research the relationship between agglomeration and industrial growth.The results shows that,firstly,at the beginning of the process of agglomeration,economies of scale(specialization index)has a great push on industrial growth,but it will hindered by congestion effects caused by over-agglomerate.however,economies of scope has ability to cure the hardships during the beginnings while the costs is very high,it will promote industrial development,the two have complementary advantages.Secondly,specialization and diversity index could promote TFP through agglomeration economies of scale and scope,which formed inverted “U”,robustness test more highlights the agglomeration economies of scope.Thirdly,agglomeration economies of scale still be the dominant path of industry cluster in our country, diversified economyrising in some places.