This paper considers spatial distribution of industrial activities and effective factors on such a distribution. Ellison and Glaeser’s spatial concentration index, has been used for measureing spatial distribution of industry. This index has been calculated by Ad-value variable for 30 provinces of Iran and for period of 2006-2013. So, The spatial panel data model has been used in order to stimate impact of effective factors on spatial concentration. Results of this paper, show that distribution of industrial activities between provinces is strongly unequal. Azarbaijan Sharghi, Markazi, Ghazvin and Tehran provinces by 0.03, 0.04, 0.05 and 0.06 for EG index, are the most industrial provinces respectively. Boushehr, Hormozgan and Ilam provinces with 0.68, 0.28 and 0.26 for EG index are the worst industrial provinces. Also, Results from estimating model show that spatial dependance of provinces is equal to 0.31. Increasing return to scale and transportation costs, each one by 0.07 and 0.001 for coefficient in model, are effective on spatial distribution of industry.
