Implications of Self-selection Effects and Transaction Costs on Implementation of Collective Action Management for the Common: Evidence from Smallholder Irrigated Rice Farms in the Lake Victoria Basin, Tanzania

Abstract

This paper explores how farmers self-select into irrigation farming ecosystem, and describe their characteristics and effects on Collective Actions (CA) management in irrigation systems. The study sampled seven irrigation schemes; both traditional improved and modern ones located in the Lake Victoria basin, namely Mahiga irrigation scheme (Ngudu), Igongwa (Misungwi), Nyida (Shinyanga rural), Maliwanda and Nyatwali (Bunda), Cheleche and Irienyi (Rorya). Cross sectional research design is employed to collect data from a total of 184 randomly sampled farm households involved in rice irrigation farming. Collected data are analyzed using Heckman two step procedures to identify self-selection factors. The inverse mills ratio result from the Heckman model is positive and significant at less than 5 % level, confirming the evidence for the presence of self-selection for the sampled farmers. Factors like large number of household labour force;  non tangible benefits like reciprocated information sharing and use of CA association as a bridge to access support; good working rules in the group;  net area sown;  trust in group members and leaders; irrigation position; respect of public services provision /contributions; dodging contributions; violation of rules are important determinants of self-selection, each with specific implication that impact positively or negatively on CA survival. The study concludes that irrigation farming ecosystem choice is a non-random choice, and hence selection of members for organized CA establishment should base on factors described above, which significantly impacted positively self-selection into treatment (irrigation ecosystem type).