Impact of Business Environment on Industrial Structure Upgrading in Guangdong–Hong Kong–Macao Greater Bay Area

In light of China’s prevailing economic landscape, establishing a favorable business environment (BE) is important for building a modern economic system, optimizing industrial structures, and achieving high-quality growth. However, the existing literature on the factors influencing industrial structures upgrading largely neglect to consider the BE as an integrated system. To address this research gap, this study empirically analyzes the relationship between the BE and industrial structure upgrading across six key dimensions, using panel data from eleven cities within the Guangdong–Hong Kong–Macao Greater Bay Area (GBA) in China, covering the period from 2008 to 2021. The study reveals several significant findings. First, substantial improvements in BE are shown to promote both the rationalization and advancement of industrial structures. Second, an in-depth analysis of the six dimensions of BE reveals that each factor has a distinct impact on the industrial structure upgrading. Based on these findings, the GBA should adopt a comprehensive and coordinated strategy to improve its BE by strengthening key aspects. These insights provide actionable recommendations for optimizing BE ecosystem and facilitating the transformation and upgrading of industries.