County-level industrial development and structure upgrade is one of the most important issues of revitaliz- ing old industrial base of China. After the cluster analysis on GDP per capita and GDP per area of each county in Liaoning Province, this paper finds the similarity of population size, land use intensity, and economic development of each county. Location quotient reflects the specialization intensity of industries in each county, and it also reflects the spatial differences of county-level industrial development. Economic development level is higher in the southeast than in the northwest of Liaoning, and the industry driving effect on county-level economy is apparent. The main influenc- ing factors include location, industrial foundation and economic system reform, capital input level, knowledge and technology dissemination, conditions of domestic and overseas markets, population and labor force transfer. Industri- alization is an important approach to urbanization for the counties in Liaoning Province. The proportion of agriculture is much higher in the northwest than in the southeast of Liaoning, so it will be take longer time for counties in the northwest of Liaoning to make industrialization, urbanization and modernization.
