In recent years, service industry in Liaoning province has been developed rapidly, and the tertiary industry accounted for about 40 percent of local GDP. This paper constructed the index system of service industry competitiveness based on the theory of the services industry and service industry competitiveness, analyses and calculates on the service industry's competitiveness of Liaoning province's cities by the factor analysis method, according to the factor analysis results and the advantages and disadvantages of development, and puts forward the policies and measures to further enhance the development of service industry in Liaoning province's three regions—Shenyang Economic Zone, Coastal Economic Belt and Liaoning Northwest Area.
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