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It is the non uniform flow of the current through the conductot.The current tends to flow more at the surface of the conductor than that of other sectionwhich results in not utilizing the whole section of the conductor properly which causes an increase in the effective resistance of the conductor and in power loss.to reduce the skin effect you make the conductor hollow
The current in conductors tends to flow near to the surfece and away from the centre of a conductor. that will decrease the effective cross sectional area of the conductor.
