PROXIMITY EFFECT
Proximity means nearness in space or time, so as the name suggests, proximity effect in transmission lines indicates the effect in one conductor for other neighboring conductors. When the alternating current is flowing through a conductor, alternating magnetic flux is generated surrounding the conductor. This magnetic flux associates with the neighboring wires and generates a circulating current (it can be termed as ‘eddy current’ also). This circulating current increases the resistance of the conductor and push away the flowing current through the conductor, which causes the crowding effect.