  It is known that radial collapse around density peaks can explain the key
features of evolution of correlation function in gravitational clustering in
three dimensions. The same model also makes specific predictions for two
dimensions. In this paper we test these predictions in two dimensions with the
help of N-Body simulations. We find that there is no stable clustering in the
extremely non-linear regime, but a nonlinear scaling relation does exist and
can be used to relate the linear and the non-linear correlation function. In
the intermediate regime, the simulations agree with the model.
