The role of the agricultural sector in terms of its contribution to the Ethiopian economy isvery immense.Further, the success and failure of the Ethiopian economy is highly correlated tothe performance of this sector.But, still now, the sector is operated by traditional means ofproduction and well known for its backwardness.Hence, to accelerate the sectors growth andincrease its contribution to the overall economic growth and securing the food self sufficiencyobjective of the country, the application of modern inputs in the sector plays a great role.　　This paper mainly aims at identifying those factors which significantly contribute to theadoption decision of modern agricultural inputs by the farmers and their productivity.To thisend, the data collected by EDRI in 2001/2002 is used.In order to identify the significant factorscontributing to the farmers adoption decision, the logit model is used.The factors contributingto productivity are identified using the Cobb-Douglas production function model.　　It is found that farmers endowed with better resources are better adopters in both Amharaand Tigray regions.The distance of input delivery institutions from the household, extensioncontact of the farmers and agro-ecological conditions are also major determinants of theadoption decision in both regions.Further, the socioeconomic status of the farmers and theeducation levels of the household heads are significant in Amhara regions.　　The impact of land size, the ownership of oxen and agro-ecological conditions to theproductivities of farmers in both regions are significant.Further, other sources of income thanagriculture, access to credit and ownership of radio are significant determinants ofproductivity in Tigray.But in the case of Amhara region, whether the farmer is adopter or not,whether there is sick family member in the household and the socio-economic status affect theproductivity o f farmers.　　Mostly, the input delivery institutions are located in the major urban and semi-urban areasand hence the distance can be taken as a good proxy to distance from major urban areas.Thefurther the household is from the major urban areas, the lower the access for informationcontributing for productivity growth.This is mainly because adoption of the new technologiesrequires cash investment that the poor households cannot afford.That is main ground forintellectuals in the area arguing that such technologies are not pro-poor, at least in the initialstages.　　It could also be argued that poor households are not willing to take any risk related to theadoption of the new technologies as compared to their corresponding average households.　　Mostly, a household whose main life stream is agriculture resides in the areas where there aresuitable agro-climatic conditions such as soil and appropriate rain fall density for theirproduction and results in high population density in the area.