Abstract:  Based on historical changes and temporal sequence, the evolution process of factor endowment change and industrial upgrading of navel oranges in southern Jiangxi province are analyzed in three stages. Following the grounded theory, the paper analyzes the driving forces behind the change of factor endowment and industrial upgrading in terms of “market efficiency” and “government facilitation”, with an emphasis on government facilitation of industrial development. It is found that the upgrading of navel orange industry in southern Jiangxi has experienced from agricultural self-sufficiency to initial industrial prosperity, and finally to the integrated development of primary, secondary and tertiary industries. The development mode of navel orange industry in southern Jiangxi can lend service to a path of characteristic agricultural development.

Key words: characteristic agriculture, industrial upgrading, market efficiency, government facilitation