Kotobe University of Education

Faculty of Business and

Economics
Department of Economics
Research Methods in Economics(Econ30631)

Yekin Ahmed (PhD)

The Foundations of Economic
Research

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Meaning of research
 research is different concept for people of different
professions:
 Among various definitions the common ones are :

 “scientific inquiry of topic of interest to obtain new facts,“ ;

and “systematic method for discovering new knowledge”

 Behind every research efforts is inquisitiveness to

understanding what, how and why of the subjects; verifying

established knowledge or generalizing concepts ; or finding

solutions.
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Meaning of research
 As he goes about research a researcher should follow
approved methodology in particular discipline such as
defining problems, formulating hypothesis, collecting and
analyzing facts to draw deductions or induction or solutions.

 Thus , research is scientific method or process to finding

solution to a problem ,or

 is the systematic approach to search for knowledge for

generalizing and formulating a theory.


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Research and Scientific Method
 Scientific method is the philosophy which governs all research
methods given the variations of techniques among disciplines.

 “Scientific method is the pursuit of truth as determined by

logical considerations. The ideal of science is to achieve a
systematic interrelation of facts. Scientific method attempts to
achieve “this ideal by experimentation, observation, logical
arguments from accepted postulates and a combination of
these three in varying proportions,”(Ostle and Mensing).

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Research and Scientific Method
 Logic guides researchers or scientist to draw propositions or
interrelations by experimenting observed facts.

 Observation helps to gather information.

 Perform experimentation to verify propositions or discover

new relationships.

 research or scientific method is based on certain basic

postulates such as:
 relies on empirical evidence; and utilizes relevant concepts

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Research and Scientific Method
 committed to only objective considerations;

 presupposes ethical neutrality, i.e., it aims at nothing but making only

adequate and correct statements about population objects;

 results into probabilistic predictions;

 methodology is made known to all concerned for critical scrutiny

are for use in testing the conclusions through replication;

 aims at formulating most general axioms or what can be termed as

scientific theories.

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Research and Scientific Method
 Research as scientific method should be guided by logic
and objective reasoning, carried out in orderly manner
with internal consistency.

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Objectives of research
 Research is pursued with the following major goals:
 Exploratory research: generate new insights subject ;
 Descriptive research: generate statistical facts or features
of subject;
 Explanatory research : establish causes and effects
relationships;
 Evaluation research: judge merits or outcomes of
programs or policy .

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Motivation in research

 Research could be undertaken with one or more of the

following desires;

 As requirement for obtaining degree;

 For searching practical solutions to problems ;

 Derive joy from creative work or respectability; and etc.

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Types of research
 Descriptive vs. Analytical:
 Descriptive research also called Ex Post fact research:
researcher describes the state of affairs or may attempt to
discover causes with no control over the variables.

 Analytical research : the researcher goes beyond description

of facts to critically evaluate the facts and figures.

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Types of research
 Applied vs. Fundamental:

 When research is meant for knowledge’s sake , it is called

basic or fundamental research.

 Its objective could either be generating theory or deducing

theory .

 Applied research aims at discovering solutions for pressing

practical problem facing society or business organizations.

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Types of research
 Quantitative vs. Qualitative:
 Quantitative research is that based on quantity measurement
or amount which can be expressed it terms of numbers.
 Qualitative research deals with subjects involving quality
or kind.
 It is concerned with phenomena underlying motives of
human behavior; factors that motivate to behave in
particular way.

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Types of research
 Conceptual vs. Empirical:
 Conceptual research involves abstract theory or ideas which
researcher uses to develop new concepts or interpret existing
ones.

 In empirical research researcher use first hand facts or data

to draw conclusions which are capable of being verified by
observation or experiment.

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Types of research
 Some Other Types of Research:
 Cross sectional or one time research: confined to a single
time-period
 longitudinal research: carried on over several time-periods.
 field-setting research or laboratory research or simulation
research, depending upon the environment in which it is to be
carried out.
 clinical or diagnostic research. use case-study methods or in
depth approaches to reach the basic causal relations.

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Types of research
 Exploratory research : the objective is to develop hypotheses
rather than their testing.
 formalized research studies : with substantial structure
and with specific hypotheses to be tested.
 Historical research : utilizes historical sources like
documents, remains, etc. to study events or ideas of the
past, including the philosophy of persons and groups at
any remote point of time.

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Types of research
 conclusion-oriented research: researcher is free to pick up a
problem, redesign the enquiry as he proceeds and is
prepared to conceptualize as he wishes.

 decision-oriented research: for the need of a decision maker

and the researcher in this case is not free to embark
upon research according to his own inclination.

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Research approaches
 Quantitative approach and qualitative approach:
 Quantitative approach : generates data in quantitative form for
further rigorous quantitative analysis in a formal and rigid
fashion.
 They are three types:
 Inferential approach: uses sample population or form a data base
to infer characteristics or relationships of population.
 experimental approach: researcher manipulates control variables
to study their effects on other variables.

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Research approaches
 simulation approach: refers to “the operation of a numerical
model that represents the structure of a dynamic process.
Given the values of initial conditions, parameters and
exogenous variables, a simulation is run to represent the
behavior of the process over time.”
 Qualitative approach: involves subjective assessment of attitudes,
opinions and behavior.

 Data generated are not subjected to rigorous quantitative

analysis.

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Research methods versus methodology
 Research methods refer to the methods the researchers use (d) in performing
research operations.
 Research methodology understood as a science of studying how research is
done scientifically.
 This refers to logic or assumptions behind using particular method.

 The methodology should address a host of questions such as why a

research study has been undertaken, how the research problem has been
defined, in what way and why the hypothesis has been formulated, what
data have been collected and what and why particular method of analyzing
has been adopted, and others.

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 the research process

 It involves six steps

 Develop an effective research question or hypothesis

 Survey the literature

 Conceptualize the problem

 Test the hypothesis with data

 Analyze and interpret the results

 Communicate
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Research process

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Criteria of Good Research
 Good scientific research is one that must :
 Define clearly concepts and purpose ;
 Describes procedures in full details and in away it could yield
objective results;
 state frankly methodological flaws and their impacts on the findings;
 draw conclusions on the basis of data;
 Researcher be person of integrity.

 Be replicable: results be verified by replicating the study and thereby

building a sound basis for decisions

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Criteria of Good Research
 The followings are qualities of a good research:
 Good research is systematic: one structured with specified steps
to be taken in a specified sequence in accordance with the well
defined set of rules.
 Good research is logical: guided by the rules of logical reasoning
to draw induction and deduction.
 Good research is empirical: relates to aspects of a real situation
and deals with concrete data that provides a basis for external
validity to research results.
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Measurement scales
Type of scale Measurement

Nominal Qualitative / Categorical

Ordinal

Internal Quantitative /Continuous

Ratio

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Measurement scales
 Nominal Scale : variables with qualitative attributes which are
categorical & coded as numbers but the numbers has no real
meaning, have no default or natural order.

 Examples:, town of residence, color of car, sex;

 The nominal variable with two categories are called

dichotomous or binary or dummy variable

 If it is more than two categories it is called polytomous

variable.

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Measurement scales
 Ordinal Scale : qualitative variable whose label number can be
put in order but don’t have a numerical meaning beyond the
order.

 Examples: Questionnaire responses coded: 1 = strongly

disagree, 2 = disagree, 3 = indifferent, 4 = agree, 5 = strongly
agree.

- Level of pain felt in joint rated on a scale from 0 (comfortable)

to 10 (extremely painful).

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Measurement scales
 Interval Scale : numerical variables where the distances
between numbers have meaning, but the zero has no real
meaning.
 With interval data it is not meaningful to say than one
measurement is twice another, and might not still be true
if the units were changed.
 Example: Temperature measured in Centigrade, a cup of
coffee at 80°c isn't twice as hot a one at 40°c.

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Measurement scales
 Ratio scale: These are numerical data where the distances
between data and the zero point have real meaning.
 With such data it is meaningful to say that one value is
twice as much as another, and this would still be true if
the units were changed.
 Examples: Heights,Weights, Salaries,Ages.
- If someone is twice as heavy as someone else in pounds,
this will still be true in kilogram

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 Components of research
 five sections

1. Introduction

2. Literature Review

3. Methodology

4. Empirical Analysis

5. Conclusions and recommendations

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Title Literature Review
methodology:
Introduction:  Design
 sampling
 Background
 data collection
 Problem statement method
 data processing and
 Rationale for the study analysis
 Objectives of the study  Ethical
considerations
 Significance of the study  Conclusions and
Recommendations
 Scope of the study
References
 Definition of key concepts Appendix
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what is Research proposal?
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 a systematic plan; needed to attain the objective of the

study

 It is like a blueprint, which the architect prepares

before the construction of a building starts.

 It discusses what the research is intended for, why the

research is important, and how it is intended to be

conducted.
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 Why Research Proposal ?
• It serves as a basis for determining the feasibility of the project

• It provides a systematic plan of procedure for the researcher

to follow

• It gives the research supervisor a basis for guiding the

researcher while conducting the study

• It reduces the probability of costly mistakes

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 Components of Research
Proposal
 Four main sections:
1. Introduction
2. Literature Review
3. Methodology
4. Work plan and budget

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 Literature Review:
Title
• Theoretical literature
Introduction:
• Empirical literature
 Background
• Conceptual framework
 Problem statement
Research methods:
 Rationale for the study
 Design
 Objectives of the study
 Population and sampling
 Significance of the study  Plan for data collection
 Scope of the study  Plan for data processing and
 Definition of key analysis
concepts  Ethical considerations
Work plan and budget
References
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Appendix
The end!

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