Abstract: Based on the strategic game between government and industrial structure adjustment under fiscal decentralization,this paper analyzes the non-cooperative game between government industry guidance and industry self-adjustment from the theoretical model,which results in the heterogeneity effect of industrial structure adjustment on green total factor productivity.Using the provincial panel data from 2004 to 2017,the dynamic panel threshold model is used to test the results.The results show that:when the pollution level is low,the implementation of fiscal decentralization will help the industrial restructuring to promote green total factor productivity;when the pollution level is high,the implementation of fiscal decentralization will not be conducive to promoting industrial restructuring and promoting green total factor productivity;fiscal decentralization affects the promotion of industrial green total factor productivity mainly through tax competition and fiscal and environmental subsidies and expenditures.Therefore,this paper provides some suggestions on the dynamic adjustment of regional financial system and the green development transformation of industry under the background of regional fiscal decentralization.

Key words: fiscal decentralization, industrial structure adjustment, green total factor productivity, environmental pollution