Abstract: It is a strategic decision to select the right leading industry to promote all forestry industries in the Inner Mongolian state-owned forest area.A dynamic method named the shift-share method is used to conduct an empirical analysis of selecting the forestry leading industry for Inner Mongolian Forestry Group,and then some suggestions are advised for further development of forestry industries.

Key words: leading industry, SSM Model, state-owned forestry area in Inner Mongolia