Aim of the present article 1 is to investigate the impact of trade liberalizationon the evolution of regional income inequalities in Turkey between 2004-2011.Despite the large body of literature on this subject, there exists several directionswhich needs to be further explored. i. so far in the literature, the concept of tradeopenness is too broadly defined. However, it is not only ‘trade’ per se that canaffect the regional economies but the composition of trade is also of great importance (Rodriquez-Pose and Gill, 2006). Indeed, it can be partitioned into twocomponents, such as exports and imports. We analyze separately the impact ofeach component on the evolution of regional inequalities. ii. in most of the empirical studies dealing with this issue, neighboring regions are assumed to have nospatial economic interconnection between each other. We, therefore, incorporatespatial spillovers of trade and growth into our analysis. Our results are summa-rized in two groups: First, regional inequalities in Turkey are quite sizable but tendto decline over the period of analyses. Second, initially poorer regions that experi-ence an export-based liberalization tend to grow faster than richer ones. Imports,on the other hand, have an opposite effect.