Abstract: From the logical starting point of government intervention theory after the concept of government environment of doing business is clarified， the evaluation index system of government environment of doing business is constructed from the four dimensions of public policy supply， institutional transaction cost， market supervision behavior， and infrastructure services. The empirical evaluation is completed by using principal component analysis on basis of 1346 questionnaires in 14 cities of Liaoning Province. The results show that Liaoning Province has achieved phased results in reducing institutional transaction costs， but there are obvious disadvantages in the supply of public policies， especially in terms of timeliness and transparency of such policies. Meanwhile there are also certain differences among different types of enterprises. Consequently， the government of Liaoning Province should focus on strengthening the government environment of doing business in enterprises and fields with relatively low scores， further improve the level of public policy supply， reduce institutional transaction costs， standardize market supervision， and enhance the quality of infrastructure services.

Key words: business environment, government environment of doing business, environmental evaluation