Competition and the effective evolution of economic systems

As public goods, economic systems have also the characteristics of private goods. The lack of competition will result in people´s unsatisfaction with their supply. For economic systems, competition can reduce their supply costs, improve their effectiveness, and motive their effective evolution. Competition takes place between countries and among domestic political interest groups. The two types of competition can work together to promote the evolution of effective economic systems. A key conclusion is that system of public goods, as well as private goods, must be competitive for the maximize social welfare. Competition can be divided into competition among domestic political interest groups and competition between countries. The impact of competition between countries on economic system changes is lower than among domestic political interest groups, because the movement of factors of production is much easier among domestic regions than between countries. If these two competitions are combined, its impact on economic system changes is greater. Therefore, setting up economic competition between regions is beneficial for the effective evolution of a country´s economic systems.