The suitability of high-order accurate, centered and upwind-biased compact difference schemes for large eddy simulation is evaluated by a dynamic analysis. Large eddy simulation of isotropic turbulence is performed with various dissipative and non-dissipative schemes to investigate the effect of numerical dissipation on the resolved solutions. It is shown by the present dynamic analysis that upwind schemes reduce the aliasing error and increase the finite differencing error. The existence of optimal upwind scheme that minimizes total numerical error is verified. It is also shown that the finite differencing error from numerical dissipation is the leading source of numerical errors by upwind schemes. Simulations of a turbulent channel flow are conducted to show the existence of the optimal upwind scheme.