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Research on The Impact of Business Environment on China’s Industrial Upgrading

Using panel data of China’s 30 provinces from 2004 to 2018, this paper empirically analyzes the impact of business environment on industrial upgrading and its regional heterogeneity. The conclusions are as follows: Firstly, the business environment has a significant positive impact on industrial upgrading both at the overall level and sub-regional level. Secondly, at the subregional level, business environment has a greater impact on industrial upgrading in the central region than that in the eastern and western regions. Finally, business environment plays a role in industrial upgrading together with other factors, innovation output level, foreign direct investment and fiscal expenditure have different effects on industrial upgrading in different regions. Therefore, all regions should improve the business environment and formulate industrial policies in line with their own development, so as to promote the optimization and upgrading of industrial structure.