Regional value as a reflection of territories’ natural and geographical differences

Introduction. The article proves the existence of regional value, which is formed taking into account natural, geographical and other features of a particular territory and reflects regional socially necessary labor costs. Theoretical analysis. The concept of “regional value” is disclosed. In relation to Russian reality, the theory of value should take into account the natural and geographical features of individual territories that affect regional socially necessary labor costs per unit of output, which differ significantly across Russia. Empirical analysis. The regional factors influencing the differentiation of individual costs that form regional value are presented. It is proved that out of many factors, it is the population’s level of income and transportation costs that form regional price differences to the greatest extent, and all other factors correlate with them. The article provides data on regional coefficients, northern allowances, the amount of the freight transportation cost, which are included in production costs and in the individual cost of goods or services. Results. The differentiation of regional value is reflected in regional prices, and in the cost of a fixed set of goods and services in general. Taking into account regional cost is necessary for developing effective regional policy and making informed economic decisions.