The transformation of rural people and land to urban land and culture is a natural discourse and inevitable process. In the process, more than half of the current world population are living in urban centres. The number of urban centres and their population is rapidly increasing while the situation of integrated development of urban centres and rural areas such URELs for sustainable development have given less attention in agricultural based countries (ABCs). Multi-disciplinary (agriculture and agro-industries) integration, multi-spatial (urban centre and its hinterlands) linkages, multiscalar (micromeso and macro) levels, multi-actors and stakeholders involvement are the noteworthy innovations in the field of development studies. This study mainly focused on URELs for agribusiness and value chains under the development themes of governance and development as well as contemporary debates. Policies, institutional settings and practical implementation strategies of integrated and balanced development discourse of basic sectoral and urban-rural economic linkages (URELs) missed in ABCs such as Ethiopia‟s comprehensive development policy ADLI neglecting the rapidly growing urban centres. Owing to this, this study is designed to examine the challenges and problems, status and agribusiness and efficiencies of URELs for exploring theoretical empirical model for virtuous circle URELs. Methodologically, the study used sequential explanatory mixed methods research and cross-sectional survey design. The sequential approach was quantitative method, qualitative method and integrating the two findings on interpretation and discussion. The findings present truncated BPLs and FPLs of agriculture and agroindustries. It was was mainly due to poor and greater ranges of efficiency from TE, AE and EE for both agriculture and agro-industries, form of government as ethnic-federalism and regionalism, violation of the existing institutional frameworks, dejure-defacto discrminatin, government businesses, policy and institutional settings, lack of R&D, many paradoxical acts and poor resources mobilization and utilization. These problems and challenges are taken as potential opportunities for improvement and new lens of developing empirical model. The overall recommendation lies on creating enabling environment for virtuous circle URELs and integrated regional development using regional development approach, avoiding illegal interventions, import-export balance, proper resource mobilization and utilization. / Development Studies / D. Litt. et Phil. (Development Studies)