Investment spillover effects include regional growth factors around the developed centers, which this study aimed investigate effects of industrial investment spillover in provinces of Iran and the quantifying of these effects. Accordingly, it uses the spatial econometrics to explore the indirect effects or industrial investment spillover. The results indicate that provinces with a higher gravity index, which are respectively Tehran, Isfahan, Khorasan Razavi, Khuzestan and Fars with a coefficient of 0.152, 0.090, 0.085, 0.083 and 0.077 respectively, have more industrial investment spillover than other provinces. In contrast, provinces with more great geographical distance from developed provinces such as Ardabil, Sistan and Baluchestan, northern Khorasan and Ilam, respectively with coefficients of 0.029, 0.031, 0.037 and 0.038, have less benefit of industrial investment spillover Compared to other regions. Also, industrial investment spillover effects for different regions, very different from each other. As for some provinces, the indirect effects are much less than direct effects and for some provinces, the indirect effects are close to direct effects. This can be due to geographical location, politics, government regulation and exposure to developed provinces.
