Abstract: Based on the new economic geography theory， a market potential model and a Krugman wage equation were estimated with the data of the prefecture cities in Liaoning Province， and how transportation costs affect the regional salary disparities in Liaoning was analyzed and then the scale effect was calculated. The results showed that the overall economy in Liaoning takes on a certain increase of scale payment， and that the transportation costs between any other two cities in Liaoning apart from Shenyang and Dalian have negative effects on regional economic levels and scales， but through their more developed transportation systems， Shenyang and Dalian have radiative effects on Liaoning’s economy. Therefore， policies aiming at improving the transportation systems are suggested to reduce the regional economic disparities in Liaoning Province.

Key words: regional economic disparity, transportation cost, scale economy effect, market potential model, Krugman wage equation