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Review article


Josip Jambrač ; Vrbovec

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There are many considerbly differences among EU countries, not only by size and population, but acord constitute their subnational organization. As well, there are significantly differences in public expenditure stake in GDP. Furthermore, great distinctions states express about subnational stake in public expenditures. The issue becomes in present time, discussed problem of existence of economies scale in high territorial fragmentation of local units. In this context, paper respects numerous studies of economies of scale about subnational authorities, and some experience about territorial reforms in EU 28. Paper analyses some elements of economy of scale Croatian municipality activities, regard of their stake in public expenditure, employment and total municipality’s expenditures. Also, regard of permanent dilemma: small or big local units, article analyses democratic aspect of local election respond, and certainly cost of local democracy. According EU average, there are not great differences between Croatian municipalities and most local authorities at the EU countries. Most territorial organizations at the EU countries still have very fragmentarily space with modest decentralization. All efforts show significant obstacles in territorial consolidation implementation reforms. Results show that Croatian local authorities have not considerable economic scale, except Zagreb City. Namely, only Zagreb City in two key facts of economy of scale: number of inhabitancies and total expenditures, participated considerable more than others local units in public expenditures, although only with two percent in GDP.


economies of scale, local units, territorial organization, size of units, public expenditures

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