Emprical Analysis Of Farmers’ Cooperative Supply In Small-scale Irrigation In Rural Communities Based On Social Capital

Small-scale irrigation is an important foundation for sustainable development ofagriculture, farmers and rural communities. Currently, shortage of water and small-scaleirrigations become prominent problems to hinder the development of China’s rural economy.From the perspective of the main supply body, cooperation by farmers to supply small-scaleirrigation facilities is an effective way. Cooperative supply calls for the “elite farmers” tocoordinate and integrate the different needs of farmers, sets the reasonable cost-sharing inorder to achieve the supply of small-scale irrigation in rural communities and maintainslong-term cooperation through high co-efficient feedback. However, it is difficult forcooperative supply in small-scale irrigations in some villages. Firstly, the elite farmers’ rolecannot be formed, which results in a difficulty to coordinate and integrate many farmers’needs. Second, effective cost-sharing programs cannot be realized due to highorganizational costs and transactional costs. In addition, low efficiency of cooperativesupply and lack of persistent incentives cause inadequate cooperation of small-scaleirrigations in small rural communities. The environment of rural communities are complexand characterized by “social acquaintance”, which determines that social capital is anessential variable to cooperative supply in small-scale irrigations as representing farmers’heterogeneity. Hence, how does social capital affect organizers generated? How do socialcapital and its structures affect farmers’ willingness to cooperate and willingness to pay?How does social capital affect the efficiency? What’s the relationship between communityfactors and individual factors in cooperative supply? These are the problems we need toanswer.In this study, from the perspective of social capital and its multidimensional features,we construct social capital index and describe the features of farmers’ social capital. Try toexplore the impact mechanism between social capital and cooperative supply in small-scaleirrigations and provide theoretical and empirical basis for the promotion and innovation ofcooperative supply in small-scale irrigation facilities in rural communities. Firstly, wedefine social capital into social networks, social trust, social reputation and social participation by combing the existing literature, and construct social capital index by factoranalysis using890households’ survey data in Xianyang City, Shaanxi Province. Secondly,based on the analysis of the status of existing supply in small-scale irrigations, this paperuses the game model and normative analysis to explain the mechanism of social capital andits different structures when cooperative supply began, and uses Logistic model to estimatesocial capital and its different structures effects in cooperative willingness. Then, estimatingthe effect of social capital and its dimensions on farmers’ payment behavior by applicationof Heckman model and calculating the standards of payment ways and amounts by Logisticand CVM models. Then, we discuss the impact of social capital on efficiency by DEA-Tobitmodel. Finally, interaction relationships between farmers’ factors and community factors aresimulated by Hierarchical Linear Model (HLM). According to conclusions, policies areproposed for institutional innovation in cooperative supply. The main conclusions of thisstudy are as follows.First, the means to build up social capital index are practical and scientific, whichdefine social capital from four dimensions of social networks, social trust, social reputationand social participation. Farmers’ characterizes of social capital is that the whole level is nothigh, unobvious variances of network size, low-level social trust and social participation,and high-level social reputation.Second, social capital has a significant impact on spontaneous cooperation supply insmall-scale irrigation facilities by expanding the network of social capital, strengtheningmutual trust, and enhancing the reputation and participation. The empirical results show thatsocial capital is significantly positive on farmers’ willingness to cooperate. The roles ofsocial network and social participation are stronger.Third, social capital can decrease risk and uncertainty to promote small-scale irrigationfacilities supplied smoothly. Payment behavior in small-scale irrigation cooperative supplyis affected significantly and positively by social participation. Cost-sharing programs are thekeys to implement cooperative supply. Principles of making cost-sharing programs are fairand efficient. The best way is that sharing the cost by irrigated area and the amount ofwillingness to pay is36.7%of the total amount invested.Fourth, social capital can improve the efficiency of small-scale irrigation facilitiescooperation supply by reducing monitor costs, negotiation costs, and transaction costs. Theempirical results show that the way of cooperation is more efficient. Social capital is animportant factor affecting the efficiency of cooperation in the supply, especially social trust,social reputation and social participation. Finally, cooperative supply is the result of farmers’ behavior choice under theenvironment of community. Interactions simulations between social environment andindividual behavior show that there is42.3%of the variance caused by differentcommunities when it comes to cooperative supply. In addition, social capital as individualcharacteristics varies with different community environment, and the same communityfactors can enhance or weaken their willingness to cooperate through the impact ondifferent features of social capital.