What is capital deepening

Capital deepening would be capital deepening is a term used in economicsTo describe a situation in which capital per worker increases, it is an increase in capital intensity. Capital deepening is often measured by the capital stock per hour of work. In general, the economy will expand, and the productivity of each worker will increase. However, the intensification of the capital factor will not mean that economic expansion continues indefinitely, in part due to diminishing returns. Investment is also required to increase the amount of capital available to each worker in the system and therefore increase the proportion of capital to work, this promotes economic growth, because increased productivity requires the accumulation of all stocks of capital per worker.

Capital widening is a term used to describe the situation in which capital increases in the same proportion as the labor force, and therefore capital per worker remains constant. The economy will expand in terms of production as long as productivity per worker is constant.

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