What are the effects of capital deepening?

Capital deepening refers to the increase in the amount of capital per worker, which can enhance productivity and economic growth. As firms invest in more advanced tools, equipment, and technology, workers can produce more output and improve efficiency. This often leads to higher wages and better living standards for workers, while also fostering innovation and competitiveness within the economy. However, it may also result in job displacement if the new capital replaces labor in certain tasks.