: using balance sheet data from a sample of 6.996 firms in the manufacturing industry , we analyse the distribution of public investments in iran at very detailed geographical level i.e , the provincial level , a region which comprises an urban area and the limited geographical area surrounding it. In his paper , we test the impact that unplanned economics and social capital have on the distribution of public investments . While the findings regarding the social variables are mixed , the important role played by unplanned economics is comfirmed . Our analysis shows that investments by people are attracted by those areas that combine industrial cluster characteristics with an unplanned of public
