Abstract: Based on the theory of New Economic Geography(NEG), an econometric model was established. Using this model and the 2000-2011 panel data of Guangxi prefecture-level administrative regions, we explored the relationship among the factors such as the market potential, the economic activity density and the wage. The results showed that(1) the other factors unchanged,the market potential,human resources and financial expenditure have significantly positive effect on regional wages,(2)the density of economic activity, the foreign direct investment and border factors have significant negative impact on regional wages,(3) only when above the lowest critical value, will the density of economic activity and foreign direct investment have significantly positive effect on regional wages. Therefore, in order to increase the market potential, Guangxi should strengthen the construction of transportation infrastructure, improve the road network density and accessibility, shorten the access time and distance between regions,further eliminate trade barriers and strengthen the interregional trade and economic cooperation. It should also increase investment to improve the stock of human capital,bring the guidance role of the government expenditures on investment to full play and strive for support of the central government on Guangxi in transfer payments. It should encourage the agglomeration of economic activity and population in space, expand the opening and optimize the investment environment, thus urge the economic density and foreign direct investment to exceed the lowest critical value.

Key words: NEG, spatial externality, market potential, economic activity density, regional wage gap, foreign direct investment