A. Erinç YELDANEbru VoyvodaKamil TaşçıMehmet Emin Özsan2025-10-0620159783319064734, 978331906474110.1007/978-3-319-06474-1_14https://www.scopus.com/inward/record.uri?eid=2-s2.0-84944603958&doi=10.1007%2F978-3-319-06474-1_14&partnerID=40&md5=db8b850e1ae6a6c5d40b7c571640bfafhttps://gcris.yasar.edu.tr/handle/123456789/9952In 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. © 2015 Elsevier B.V. All rights reserved.EnglishMiddle Income Trap, Regional Computable General Equilibrium, Regional Development, Regional Inequality, Traditional Industrial PolicyBook Part