Abstract:Based on the provincial panel data from 1993 to 2014, this paper using high-level of industrial structure estimates China"s industrial structure optimization index, and according to the solow residual method estimates the total factor productivity of the provincial each years. Based on combed China’s industrial structure evolution process, from the perspective of supply factors, analyzes the influencing factors of the optimization of China"s industrial structure and the path. Results show that: the capital investment is a major determinant of the optimization of industrial structure in China, the total factor productivity in China is playing an increasingly important role in the optimization of industrial structure, but the contribution of labor supply is reduced. In addition, this paper also found that the total factor productivity and capital investment to the influence of the optimization of industrial structure increasing as the region"s economic development level.