Industrial agglomeration has spatial difference on spillover effects of economic growth. By means of ESDA analysis, this paper establishes the spatial weight matrix of economic distance and examines the spatial correlation of inter-provincial industrial agglomeration and economic growth in China. Based on this, a spatial panel of Durbin model is constructed in order to analyze the influence of industrial agglomeration on economic growth and to decompose the spatial effect based on partial differential method. Results show that there is obvious spatial autocorrelation and spatial dependence between industrial agglomeration and economic growth in China, showing a tendency of high-high agglomeration and low-low agglomeration, which grows more distinct over time. The industrial agglomeration has a positive effect on the local economic growth, and will generate negative spatial spillovers in other areas, which will aggravate regional imbalance.