HOW TO REGIONALIZE CROATIA OPTIMALLY?

This paper questions the choice of the optimal variable of the statistical regionalization of Croatia on the NUTS II level. The choice criteria are the following: Eurostat population number, maximum financial effects gained from structural fund access in the long term and the criteria of homogeneity of specific regions as the basis for consistent, long term regional development policy. The authors examine the eight alternatives of statistical regionalization and demonstrate the implications for Croatia, from the fi nancial and development viewpoint. The tested alternatives were the statistical regionalization with two, three and four NUTS II regions and all of the advantages and disadvantages for each of the examined variables. In continuation, the authors question the link between the regional policy approach (bottom-up and top-down) and the suitability of the specific choice of statistical regions for regional policy management in Croatia.