The formation of the diester is not part of the Dieckmann reaction, and occurs by 2
conjugate addition
steps.
This reaction is the
intramolecular
version of the
Claisen
reaction.
The ring closure step is classified as 5-exo-trig according to the Baldwin rules.
The reaction is often used to form heterocycles - the product can easily be hydrolysed and decarboxylated to form a heterocyclic ketone.
References:
Lin R.; Castells J.; Rapoport H.;
J. Org. Chem.
, 1998, Volume 63, Issue 12, 4069-4078
Miyaoka H.; Honda D.; Mitome H.; et al.
Tetrahedron Lett.
, 2002, Volume 43, Issue 43, 7773-7775