Abstract: The direct and the indirect effect of environmental regulation having on TFP（Total factor productivity）of manufacturing are researched in the article, an econometric model has been established as well. When researching into the detail influences of environmental regulation having on TFP of manufacturing in Yangtze River Economic Belt, tourism revenue is treated as the instrumental variable of environmental regulation, dealing with endogeneity. By checking the results, we can find it that: ①Environmental regulation will have a direct negative effect on TFP of manufacturing in Yangtze River Economic Belt, while it can also have an indirect positive influence on TFP of manufacturing by stimulating technological innovation and management improving. ②Environmental regulation will have a more remarkable effect on traditional industries. ③The effect environmental regulation has on TFP of manufacturing is significant in the upper and middle Yangtze, while it is insignificant in the lower reaches of the Yangtze River.