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The present work assess the effects of MAR and Jacob's type agglomeration economies on a sample of firms in the machineries and textiles industries in Greece for the periods 1989-91 and 1999-01. The analysis employs a stochastic production frontier function and allows agglomeration economies to enter as inputs and/or as factors reducing inefficiency. Results re-confirm that the effects of agglomeration economies are industry specific. In our study, the machineries industry benefits from MAR type agglomeration economies and the textiles industry benefits from Jacob's type agglomeration economies. Agglomeration economies may exercise a twin effect on firms' productive efficiency. First, as in the case of the machineries industry in our study, MAR agglomeration economies may act as a new input and affect the kernel of the production frontier. Second, agglomeration economies may act as a factor reducing technical inefficiency with non-neutral effects with labour and capital as in the case of both the machineries and the textiles industries in our study. Finally, it is indicated that agglomeration economies establish a type of "path dependence" for firms. Firms that make significant use of agglomeration economies survive to the next period at higher percentages in comparison to other firms in the same industry. At the same time, entrants are favoured by MAR type agglomeration economies while incumbents are favoured by Jacob's type agglomeration economies.

Business networks are associated to increased business performance and are regarded as a major factor influencing the development of rural and lagging areas. It is assumed that businesses access many networks in order to pursue their short and long term entrepreneurial objectives. The most important spatial features of this business-network relationship are firstly the spatial coverage of the network and secondly the location of the business in relation to its markets. As concerns the spatial coverage of the networks we distinguish between vertical and horizontal business networks. Vertical networks allow local enterprises to forge alliances with externally located consumers, suppliers, distributors, retailers and institutions, while horizontal networks provide relationships with locally based producers, institutions, and consumers. As concerns the location of the business in relation to its markets we distinguish between firms located in accessible locations and firms located in less accessible and peripheral locations in relation to their output markets. A survey of 160 businesses in the manufacturing and services sectors in two areas of Greece (one remote and one more accessible) is used to test empirically the effects of the spatial features of the business-network relationship on firm performance. Business performance is approximated through a series of measures capturing conventional firm growth and other less conventional managerial objectives. The analysis demonstrates that a significantly high proportion of successful businesses located in the remote area simultaneously access vertical and horizontal networks while in the less remote area successful businesses access mainly vertical networks. It is argued that policy initiatives towards the support of business networks as a tool of regional development policies should have a strong territorial and spatial perspective.

Tourists' perception of regional image is critical as regards the degree of satisfaction obtained from the overall tourism experience. The present paper analyses the ways in which a region's image is incorporated into the tourist products and the overall tourism experience. Regional image is acknowledged to entail elements of the socio-cultural, environmental and historical heritage of a region. The latter affect the quality of the tourist product as perceived by the tourists. Consequently, they also affect the tourist's subjective judgement of satisfaction based on the quality of the tourism experience they have 'consumed'. The present paper utilizes data drawn from an EU Research Project (SPRITE QLK5-CT-2000-01211) survey conducted in two regional sites of rural tourism in Greece. Analysis and results focus especially on comparisons between the two study regions. Further, policy implications as regards the development of the rural tourism product, are also discussed.

Greece is a major international tobacco producer. Flue-cured tobacco varieties constituted the major alternative crop to Greek farmers growing certain oriental tobacco varieties. Diffusion of flue-cured tobacco was rapid due to its high yields and the depressed market for certain oriental tobacco varieties. Currently, the common organisation of the tobacco market is undergoing substantial changes, and the farmers' response will be a vital factor of success. A portfolio selection model reveals that the major factors influencing the adoption decision of tobacco growers are the size of the farm measured in annual work units, the farm's proximity to urban centres, the farm's diversification and the farmer's age. The number of contacts with institutions is, surprisingly, inversely related to adoption. Future tobacco policies impinging on factors influencing decisions to adopt new varieties or production practices may be more cost-effective. © 1998 Elsevier Science B.V. All rights reserved.