Nepal continues to be a predominantly agricultural economy with around one third contribution to the country's Gross Domestic Product (GDP). Although the share of manufacturing sector is small its role in Nepal's development during the coming decades cannot be ignored as the mass production of consumer goods is getting momentum in the recent years (Sharma, 1980). Expansion of manufacturing sector, both in terms of size and productivity helps generate employment, accelerates growth, reduce poverty and bring prosperity as it has been observed in other developing countries (CBS, 2014) . However, without empirical evidence from scientific studies it is hard to say which industry is more attractive in terms of factor productivity and can contribute relatively better to the economy. In this backdrop, this paper aims to empirically estimate and test whether the C-D production function may be useful in analyzing the manufacturing industries of Nepal. Besides, in order to draw som...