This paper focuses on the ranking of industrial investment in the Khorasan-e-Razavi province of Iran. The designing of industry must involve selection of those that have sufficient success potential. Hence, from several factors of success, the following four indices have been selected—export rate, productivity, employment, and capital. These indices have been studied over a period of five years and important criteria for evaluating the alternatives (selection of industry) by each of the above four indices have been identified. Also, the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) has been employed to calculate the success potential of each alternative, as evaluated by the indices. The empirical data comprises the longitudinal survey of the industries of the Khorasan-e-Razavi province. The study finds that beverage and food industries are placed as the first priority. The study also finds nine industries, which are expected to employ labor and increase their investment as well as efficiency.

Many scholars have modeled the importance of investment to industries and economic development (Eswaran and Kotwal, 1986; Feder, 1990; and Fry, 1995). The general implications of such studies are that lack of investment can impact entrepreneurs both at the firm and the household level.Greenwald and Stiglitz (1990) have argued that the financially constrained behave like risk averse individuals. Accordingly, firms that are capital restricted will refrain from investing in creative and innovative processes that are characteristic of entrepreneurial ventures.

According to Tanbabacoochi (2003), economic growth and development in all human societies, both developed and developing, are dependent on the investment on manufacturing products and services, both quantitatively and qualitatively, on the one hand, and on creating new job opportunities which consequently results in public welfare, on the other hand. Attracting and supporting capital and know-how or technology are among those factors which, paying attention to its necessity and urgency, is of particular importance. When it comes to the attraction of investment and participation of the technology holders in investment, the greatest and biggest world economies are particularly considered to be having a special advantage.

It is clear that the attraction of capital requires a particular economic structure which, in competition with rival economics, has the desired capacity or potential features such as security, social status, accessibility to the consumer markets, raw materials and resources, social and political stability, expenditures and expenses, profit prospects, legal atmosphere, etc. Social and economic development and realization of the desired goals involves a proper allocation of limited resources such as capital, natural resources, labor, and management. In addition, the goals and objectives of economic development are different in various regions. As a result, in order to realize the social and economic objectives required for each particular region, limited resources should be engaged (Jordon, 1993). Learning from the events resulting from the economic tests several centuries ago, and the government-centered or closed economic systems, and applying the most primitive basics and principles of national economics, it is evident that the national production has to be quantitatively and qualitatively improved.

Accounting Research and Audit Practices Journal, Technique for Order Preference by Similarity to Ideal Solution TOPSIS, Economic Growth, Economical Indices, Economic Objectives, Multiple-Attribute Decision Making, MADM, International Standard Industrial Classification, ISIC, Industrial Investment, Economic Development, Decision Matrix.