Education　expenditures　(EDUE)　act　as　a　key　driver　of　a　nation＇s　economic　growth　and　industrial　structure　upgrading,　according　to　development　story　of　developed　countries.　Collecting　panel　data　on　China＇s　31　provinces　from　2004　to　2015,　this　paper　conducts　an　empirical　analysis　on　the　influence　of　EDUE　on　industrial　upgrading　(IND)　via　analytical　method　of　equal　part　linear　regression　(EPLR),　and　then　compares　analysis　results　with　the　model　and　the　results　with　conventional　linear　regression　model.　According　to　the　research　results,　standard　linear　regression　(SLR)　estimation　indicates　that　EDUE　has　little　effect　on　upgrading　of　regional　industrial　structure.　In　low　and　high　equal　parts,　the　influence　of　EDUE　is　underestimated　with　SLR,　which　demonstrates　a　significant　impact　of　EDUE　on　IND.　The　impact　of　foreign　direct　investment　(FDI),　via　SLR,　is　underestimated　in　low　equal　part,　but　obviously　overestimated　in　medium　and　high　equal　parts,　which　indicates　that　FDI　has　a　certain　impact　on　IND.　©　2018　Walter　de　Gruyter　GmbH.　All　rights　reserved.