A Research on the Relation between Government Subsidies and Industrial Upgrading in China

Based on the panel data of 31 provinces and municipalities in China from 2005 to 2016, a research on the relation between government subsidies and industrial upgrading is carried out. It is found that government subsidies have a positive effect on industrial upgrading in China, but there also exists regional heterogeneity. Compared with the eastern, central and northeastern regions, the impact of government subsidies on the western region is more significant.