The "flying geese" model of industrial upgrading is an important power to promote the development of the manufactural industry in China. Under the great nation effect, taking manufactural industry as an example, through building a trilateral mathematical model about enterprise-consumer-government, this thesis shows that:the great nation effect determines that China can promote the process of the "flying geese" model of industrial upgrading through a dynamic loop of industrial agglomeration and diffusion, and the realization of economy of labor division among regions improves the economic efficiency and quality of "flying geese" model of industrial upgrading. Government behavior is a double-edged sword, the central and local government needs to select the supportive and regulatory model scientifically and define their different roles reasonably according to different decision interval, which can promote the "flying geese" model of industrial upgrading under the great nation effect.