A Primary Comparative Analysis and Integration of the Hayekian-Laozian Theories of Knowledge, Market Process and Law

Abstract

The thought of Hayek has been a topic of considerable interest for a while now and the studies of Laozi’s philosophy have also been drawing increasing attention worldwide. In particular, increasingly people seek answers to current political, economic and social questions within Laozi’s wisdom from over 2000 years ago. By comparing and integrating the theories of Hayek and Laozi, this paper uncovers new insights into the ideas of Laozi and how they align with some of Hayek’s central ideas. Firstly, this article makes a comparative analysis of the theories of Hayek and Laozi based on their original works, particularly through the authors’ new translation of the original Chinese texts of Laozi. Further, this paper shows how the ideas of both authors overlap and are complimentary and therefore proposes a Hayekian-Laozian perspective that informs the idea of entrepreneurship. Therefore, this paper not only seeks to show that Laozi anticipated modern economic insights but that these modern insights can also be integrated into a more detailed theory.

Keywords: Hayek, Laozi, market competition, Daodejing

JEL Classification: A12, D4, B11, B22, B53, D83, K2, L26