Capital deepening

Capital deepening

Capital deepening is a term used in economics to describe an economy where capital per worker is increasing. It is an increase in the capital intensity. Capital deepening is often measured by the capital stock per labour hour. Overall, the economy will expand, "and" productivity per worker will increase. However, economic expansion will not continue indefinitely through capital deepening alone. This is partly due to diminishing returns and wear & tear (depreciation).

Capital widening is a term used to describe the situation where capital stock is increasing at the same rate as the labour force, thus capital per worker remains constant. The economy will expand in terms of aggregate output, "but" productivity per worker will remain constant.

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  • Капитал — CAPITAL Вложения в материальные активы (производственные помещения, офисы, оборудование и т.д.) и человеческий капитал (образование, профессиональная подготовка и т.д.). Капитал один из трех основных факторов производства наряду с трудом и… …   Словарь-справочник по экономике

  • Накопление капитала — CAPITAL ACCUMULATION/FORMATION 1. Увеличение запасов основного капитала в экономике страны с целью достижения роста объемов производства. Скорость накопления капитала важный показатель уровня экономического роста в стране. Раздел экономической… …   Словарь-справочник по экономике

  • «Расширение» капитала — CAPITAL WIDENING Одновременное увеличение затрат капитала и затрат рабочей силы. Иными словами, отношение величины вложенного капитала к величине трудовых ресурсов при производстве продукции остается неизменным. Ср.: Capital deepening. См.… …   Словарь-справочник по экономике

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