Based on new development philosophy, the panel data of 31 provinces (regions and cities) in China from 2007 to 2019 were selected, the relevant variables were calculated by using the global main component analysis method and the DEA-Malmquist index method, and the VAR model was constructed, and the interaction between the upgrading of China's industrial structure and the high-quality development of the economy was explored through co-integration test, pulse response function and variance decomposition analysis. The results show that there is a long-term co-integration relationship between the upgrading of industrial structure and the development of high-quality economy over time. The current effect coefficient of industrial structure upgrading lag 1 on high-quality economic development is 1.584897, the effect coefficient of industrial structure upgrading lag 1 is 0.058983, the positive impact of industrial structure upgrading on high-quality economic development is less than the positive impact of high-quality economic development on industrial structure upgrading, the contribution rate of industrial structure upgrading to high-quality economic development is raised to about 20%, and the contribution rate of high-quality economic development to industrial structure upgrading is gradually increased to about 40%. Finally, according to the above research results, the corresponding policy recommendations are put forward.