The role of the agricultural sector in terms of contribution ' to the 'Ethiopian economy â€¢ , Iis very immense. Further, the success and failure of the Ethiopian economy is highlyrncorrelated to the performance of this sector. But, still now, the sector is operated byrntraditional means of production and well known for its backwardness. Hence, tornaccelerate the sector's growth and increase its contribution to the overall economicrngrowth and securing the food self sufficiency objective of the country, the applicationrnof modern inputs in the sector plays a great role.rnrnThis paper mainly aims at identifying those factors which significantly contribute to thernadoption decision of modern agricultural inputs by the farmers and their productivity.rnTo this end, the data collected by EDRI in 200112002 is used. In order to identify thernsignificant factors contributing to the farmers' adoption decision, the logit model isrnused. The factors contributing to productivity are identified using the Cobb -Douglasrnproduction function model.rnrnIt is found that farmers endowed with better resources are better adopters in bothrnAmhara and Tigray regions. The distance of input delivery institutions from thernhousehold, extension contact of the farmers and agro-ecological conditions are alsornmajor determinants of the adoption decision in both regions . Further, the socioeconomicrnstatus of the farmers and the education levels of the household head's arernsignificant in Amhara regions.rnThe impact of land size, the ownership of oxen and agro-ecological conditions to thernproductivities of farmers in both regions are significant. Further, other sources ofrnincome than agriculture, access to credit and ownership of radio are significantrndeterminants of productivity in Tigray. But in the case of Amhara region, whether thernfarmer is adopter or not, whether there is sick family member in the household andrnthe socio-economic status affect tile productivity of farmers