On the basis of the research framework of the new economic geography, this paper conducts an empirical study of the effects of administrative monopoly and market allocation on the manufacturing industry geographical cluster in the central region. The results indicate that both administrative monopoly and market allocation have significant influence on the development of the manufacturing industry cluster in the central region, but the influence of the former is bigger than that of the latter. The administrative monopoly has multiple influences on the manufacturing industry cluster in the central region, while the traditional administrative monopoly measures represented by taxation go against the promotion of industry cluster. In addition, for the changes of geographical clusters of different types of manufacturing industry,the market allocation factors playing their roles are also different. As for the geographical clusters of high level clustering industries, the effect of the money external factor among the market allocation factors is the most significant. As for the clustering industries of middle level, the effect of the scale external factor is the most significant. The effects of knowledge externality on geographical cluster of manufacturing industry in the central region are not significant. On the basis of the research framework of the new economic geography, this paper conducts an empirical study of the effects of administrative monopoly and market allocation on the manufacturing industry geographical cluster in the central region. The results indicate that both administrative monopoly and market allocation have significant influence on the development of the manufacturing industry cluster in the central region, but the influence of the former is bigger than that of the latter. The administrative monopoly has multiple influences on the manufacturing industry cluster in the central region, while the traditional administrative monopoly Measures represented by taxation go against the promotion of industry cluster. In addition, for the changes of geographical clusters of different types of manufacturing industry, the market allocation factors playing their roles are also different. As for the geographical clusters of high level clustering industries, the effect of the money e As for the clustering industries of middle level, the effect of the scale external factor is the most significant. The effects of knowledge externality on geographical cluster of manufacturing industry in the central region are not significant.