Social capital and health at the country level

This study examines the relationship between social capital and health. We use various estimation methods such as pooled OLS, a split-sample approach, a quadratic regression, and fixed effects model to investigate country-level unbalanced panel data of 194 countries for the time period 1990–2015. The results support the negative effect of bonding social capital and the positive effect of bridging social capital on health. The effects are more pronounced in low income countries. The first contribution of the paper is to better explain the mixed results of previous studies by focusing on the distinction between the two types of social capital. The second contribution of the paper is to address endogeneity and nonlinearity problems and to capture dynamic change by using various econometric methods. The findings imply that the socio-economic effects of social capital are different depending on the type of social capital.