Abstract: Based on the 2000-2016 panel data of 30 provinces in China，this paper uses the Malmquist index method to measure the upgrading levels of industrial structures，and makes a quantitative analysis of the impact of foreign direct investment （FDI） and environmental regulations on industrial structure upgrading by constructing a spatial autoregressive model（SAR）. The results show that：there is positive spatial correlations among the level of industrial structure upgrading，FDI，and environmental regulations，and there is a positive spatial autocorrelation in the upgrading level；both FDI and environmental regulations have significantly promoted the upgrading of industrial structures，but the interaction between FDI and environmental regulations has a negative impact on the upgrading；economic growth，industrial scale，technological innovation，infrastructure and human capital have an active role in promoting the upgrading of industrial structure，while government taxation has a considerable negative impact on the upgrading.

Key words: FDI, environmental regulations, industrial structure upgrading, Malmquist index, spatial autoregressive model