Did Jackknife Works? Testing Stability of Technical Efficiency in Biggest Tomato Producers in MENA Region
Department of Business Administration, College of Administration and Economics, Wasit University, Iraq
Abstract: This study aims to assess the stability of technical efficiency (TE) scores of major tomato producers in Middle East North African (MENA) region through Jackknife technique. Idea behind this technique is to eliminate outliers that may affect efficiency frontier and scores of efficiency. Those major producers are Iran, Turkey, and Jordan. During the study period, a gap was formed between demand and supply of tomato. Widening this gap might lead to a problems of food unsecured. Being food unsecured might relate to being technically inefficient. This study finds that average pure technical efficiency (PTE) was (0.91, 0.98, and 0.89) per cent for Iran, Turkey, and Jordan, respectively. This means that those countries can save inputs by (0.9, 0.2, and 0.11) respectively and still getting the same level of output. Jackknife technique results have found that there is no extreme outliers effect for Iran. However, there is an outlier effect for Turkey and Iran. In other words, by eliminating outlier years from analysis, policy analysis based on TE scores can be more dependable and trustworthy. Stakeholders within these countries can utilize the output of this study to increase their productivity which will lead to food security.
Keywords: Tomato production, Inputs Utilization, VRS, Data Envelopment Analysis.