DEMOGRAPHIC, ECONOMIC AND FISCAL EFFECTS OF SUPPORTS FOR MOUNTAIN AREAS DEVELOPMENT IN THE REPUBLIC OF CROATIA

This paper presents the results of theoretical and empirical research that determines the longterm development characteristics of mountain areas in the Republic of Croatia, as well as the impact of the previous system of support for their development. Based on the theoretical and strategic analysis of the development problems of mountain areas, the aim of this research was to analyse the demographic, economic and fiscal dynamics of mountain areas in Croatia by comparing them with the average trends at the national level. Therefore, the aim of this research was to critically and empirically examine the efficiency and shortcomings of the previous system of support for mountain area development within the framework of the legally defined objectives of Croatian regional policy. The results of the conducted research show an increasing development divergence between the Republic of Croatia and its mountain areas, but also an inefficiency of state interventions in curbing this process. The main reasons for this are the low level of state subsidies, the lack of quality criteria for their allocation and the implementation of insufficient measures and instruments for the development of mountain areas.