Capital deepening refers to:

Capital deepening refers to the process of increasing the amount of social overhead capital in an economy. This means focusing on the development and improvement of infrastructure, such as transportation networks, communication systems, and public utilities. Capital deepening aims to enhance the productivity and efficiency of an economy by providing the necessary physical and social infrastructure to support economic activities.

Explanation:
Capital deepening involves increasing the quantity and quality of fixed capital per worker in an economy. Fixed capital refers to physical assets, such as machinery, equipment, buildings, and infrastructure, that are used in the production process. By increasing the amount of fixed capital per worker, productivity and output levels can be improved.

Importance of social overhead capital:
Social overhead capital refers to the infrastructure and facilities that support economic activities but are not directly involved in the production process. This includes transportation networks, communication systems, education and healthcare facilities, and public utilities. Investing in social overhead capital is essential for economic development as it provides the necessary foundation for businesses to operate efficiently.

Benefits of capital deepening:
1. Increased productivity: By increasing the amount of fixed capital per worker, capital deepening allows for more efficient production processes, leading to higher productivity levels. This can result in increased output and economic growth.

2. Improved infrastructure: Capital deepening involves the development and improvement of infrastructure, such as roads, bridges, ports, and power plants. This enhances connectivity and accessibility, making it easier for goods and services to be transported, and improving the overall efficiency of the economy.

3. Enhanced human capital: Investing in social overhead capital, such as education and healthcare facilities, improves the quality and skills of the workforce. This leads to a more educated and healthier population, which can contribute to higher productivity and economic development.

4. Attracting investment: A well-developed infrastructure and social overhead capital can attract both domestic and foreign investment. Investors are more likely to be attracted to countries or regions with efficient transportation networks, reliable utilities, and a skilled workforce.

5. Regional development: Capital deepening can help reduce regional disparities by improving infrastructure and social services in less developed areas. This can promote balanced economic growth and reduce income inequalities.

In conclusion, capital deepening refers to the emphasis on social overhead capital and the increase in the amount of fixed capital per worker. It plays a crucial role in improving productivity, enhancing infrastructure, and attracting investment, contributing to overall economic development and growth.