Abstract

The study examines the relationship between structure-administrative decentralization and governance sustainability, and their role for optimum functioning of regional economy. It analyses a conceptual framework, utilized to measure the structural decentralization process, the level of compatibility between activities in two administrative categories/processes - Integral and Conceptual categories. In addition, the study determines the utility coefficients of these activities in the process of administrative, social and economic decentralization. They are very important for optimizing the administrative/ governing behavior of local authorities and business organizations.