Editing Balassa–Samuelson effect (section)

==Trade theory implications==
The [[supply-side economics|supply-side economists]] (and others) have argued that raising international competitiveness through policies that promote [[traded goods]] sectors' productivity (at the expense of other sectors) will increase a nation's [[GDP]], and increase its  [[standard of living]], when compared with treating the sectors equally.{{Citation needed|reason=Reliable source needed for the whole sentence|date=October 2015}} The Balassa–Samuelson effect might be one reason to oppose this [[trade theory]], because it predicts that: ''a GDP gain in [[traded goods]] does not lead to as much of an improvement in the living standard as an equal GDP increase in the non-traded sector''. (This is due to the effect's prediction that the CPI will increase by more in the former case.)