Abstract
In this chapter Ayers’ model of human capital investment will be discussed and its applicability to the Texas-Mexico borderland will be investigated. Ayers (1988) suggests that because of the political risks associated with borderland economies there may be less incentive for human capital investment. Human capital investment is defined as the investment in an individual’s training or education made by either the employer or the individual. Following the analysis by Flanagan et al. (1989), an internal rate of return method of analysis will be applied to Ayers’ model. Four propositions will be presented and discussed.
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© 1993 Khosrow Fatemi
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LeMaster, J., Ebrahimi, B. (1993). Analysis of Ayers’ Model of Human Capital Investment with Political Risk and its Application to the U.S.—Mexico Border Area. In: Fatemi, K. (eds) North American Free Trade Agreement. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-22976-5_16
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DOI: https://doi.org/10.1007/978-1-349-22976-5_16
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-22978-9
Online ISBN: 978-1-349-22976-5
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)