The role of the agricultural sector in terms of its contribution to the Ethiopianrneconomy is very immense. Further, the success and failure of the Ethiopian economyrnis highly correlated to the performance of this sector. But, still now, the sector isrnoperated by traditional means of production and well known for its backwardness.rnHence, to accelerate the sectorâ€™s growth and increase its contribution to the overallrneconomic growth and securing the food self sufficiency objective of the country, thernapplication of modern inputs in the sector plays a great role.rnThis paper mainly aims at identifying those factors which significantly contribute tornthe adoption decision of modern agricultural inputs by the farmers and theirrnproductivity. To this end, the data collected by EDRI in 2001/2002 is used. In order tornidentify the significant factors contributing to the farmersâ€™ adoption decision, the logitrnmodel is used. The factors contributing to productivity are identified using the Cobb-rnDouglas production function model.rnIt 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 headâ€™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 the productivity of farmers.