Abstract: The Capital Constructed model (CC model) ignores the influence of factor flows on the industrial spatial distribution.Therefore, this paper develops a new "Capital Constructed model" which model that the process of capital agglomeration is accompanied by industrial labor flowing, moreover, it is the real capital's reward rather than the nominal one that determines theconstruction of capital. Our studies show that：With the increase of trade freeness, the capital discount rate and the expenditureshare on industrial goods, the decrease of substitution elasticity and the capital depreciation rate, the stability of symmetrical structure will be weakened in a way that strengthen the stability of center-periphery structure；The geographical structure of an economy is shaped by the tension between centripetal forces and centrifugal force.If the economies of scale is prominent enough, or the expenditure share on industrial goods is high enough, the market crowding effect will be transformed into an agglomeration force；Different relationships between break point and sustain point indicate that the variations of trade freeness can diversify the dynamic process of industrial spatial evolution in our CC model.

Key words: industrial labor flowing, economic geography, spatial equilibrium, The Capital Constructed model