How Mobile Is the Footloose Industry? The Case of the Notebook PC Industry in China.

The article explores the significant role of local labor institutions in determining the competitiveness of China in the notebook personal computer (PC) industry. It cites that the said industry is believed to be footloose since it is the kind of sector in which the regional competitive advantage constantly shifts over time. It highlights the unique labor institution known as hukou which allowed coastal areas to make use of labor in other parts without paying full labor reproduction costs.