Abstract: In the framework of the new economic geography，this paper constructs an economic model to analyze the functional mechanism between spatial agglomeration and regional income gap. The results indicate that the spatial agglomeration of economical activities can lead to the widening of regional income gap, and such influence will be weakened as the regional transportation cost reduces. The empirical analysis of China’s provincial panel data is basically consistent with the conclusion of the theoretical analysis. These results can provide policy implications for Chinese government to achieve balanced regional cooperation and development and narrow the regional income gap.

Key words: spatial agglomeration; regional income gap; new economic geography