Inspired by the observed contrasting patterns of industrial distribution in East Asia and Europe,this paper conducts an empirical clarification of the difference in spatial relationships amongcountries within a region for the electric machinery industry by use of spatial econometricanalysis. The results indicate that, while production in the electric machinery industry in acountry is positively correlated with that of neighboring countries in East Asia, there is nosignificant spatial correlation in Europe. Such a difference in spatial interdependence hasimportant implications for economic development in those regions
