A. Erinç YELDANEbru VoyvodaKamil TaşçıMehmet Emin ÖzsanYeldan, ErinçÖzsan, Mehmet EminVoyvoda, EbruTaşçý, KamilEmin Özsan, MehmetTaşçı, Kamil2025-10-0620159783319064741978331906473425122363, 251223472512-234710.1007/978-3-319-06474-1_142-s2.0-85145074351https://www.scopus.com/inward/record.uri?eid=2-s2.0-85145074351&doi=10.1007%2F978-3-319-06474-1_14&partnerID=40&md5=1dbbc19c6144e779343ec4938b613601https://gcris.yasar.edu.tr/handle/123456789/9936https://doi.org/10.1007/978-3-319-06474-1_14In this study we investigate the macroeconomic effects of two complementary policy environments to invigorate growth employment and income equality across two broadly differentiated regions in Turkey: poor and high/mid-income. With the aid of a regional computable general equilibrium model that disaggregate the production structure into 13 sectoral activities and two geographical regions we first study the long run dynamic effects of a regional production and investment subsidization program. Second we supplement this environment by a productivity enhancement program in the poor region. Our results reveal that regionally differentiated productivity enhancing measures coupled with a subsidized investment program to facilitate capital accumulation and reduce the outflow of factors out of the poor region are of utmost importance in designing a sustained growth path to pull the aggregate economy from the dual traps of middle income and of poverty. © 2022 Elsevier B.V. All rights reserved.Englishinfo:eu-repo/semantics/closedAccessMiddle Income Trap, Regional Computable General Equilibrium, Regional Development, Regional InequalityMiddle Income TrapRegional Computable General EquilibriumRegional InequalityTraditional Industrial PolicyRegional DevelopmentBook Part