A thesis submitted in partial fulfillment of the requirements for the award of the degree of Master of Science

Thesis (M.Sc.) - Asian Institute of Technology, 1990

This study analyses the locational pattern of manufacturing industries, employing more than ten workers and having equipment not less than ten HP energy in Nepal, in general and in the Kathmandu Valley in particular. The study make s use of various techniques - such as Coefficient of Localization to determine the concentration or dispersal of manufacturing industries, Location Quotient to describe the magnitude or degree of relative development of manufacturing industries and Mix & Share Analysis to compare the changes of economic activities of regions in relation to the changes taking place at the national level - to analyze the results. The findings, as the results of the study show, indicate that manufacturing industries are dispersed throughout the country. Metal a nd iron industries, however, are specialized in the Kathmandu Valley . Kathmandu Valley occupies third rank overall in terms of number of establishments , number of person engaged, gross output and value added in the country 's total. Kathmandu Valley has smaller area a nd far less population than other Development Regions . Hence, it can be said that its third ranking overall implies that manufacturing industries are more or less localized . Convenience and accessibility to the market, co- operation and inducement from central and local government were main reasons for locating industries in the Kathmandu Valley . Low land price, easy and good transportation facilities were the key factors for selection of their respective locations mostly outside the municipality boundary in ribbon zones and periphery of the Valley. However, most of the industrialists expressed that government should provide urban infrastructure, low purchasing price of land facilities and credit subsidies . Thus a greater emphasis is necessary regarding the effective implementation of decision taken by Industrial Promotion Board in May 1989 to restrict selected industries in the Kathmandu Valley and government policy should be specific regarding the scale as well as the type of industries to b e established in Kathmandu Valley. Similarly, government should promote industrial growth outside the Kathmandu Valley by providing incentives to the industrial