Research Method for Economics

Introduction

Dr. Seetha Bandara

Dept. of Economics

• Depending on who you ask, you will likely get verydifferent answers.

– Some people will say that they routinely researchdifferent online websites to find the best place tobuy goods or services they want.

– Television news channels supposedly conductresearch in the form of viewer polls on topics ofpublic interest such as forthcoming elections orgovernment-funded projects.

– Undergraduate students research the Internet tofind the information they need to completeassigned projects or term papers.

What is research?

– Graduate students working on research projectsfor a professor may see research as collecting oranalyzing data related to their project.

• However, none of the above can beconsidered “scientific research” unless:

(1) it contributes to a body of science, and

(2) it follows the scientific method.

What is research?

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What is research?

• Research is what we do when we have a question or a problem we want to resolve

• We may already think we know the answer to our question already

• We may think the answer is obvious, common sense even

• But until we have subjected our problem to rigorous scientific, scrutiny, our 'knowledge' remains little more than guesswork or at best, intuition.

What is research?• Research is a careful and exhaustive investigation of a

phenomenon with an objective of advancing knowledge.

• “A careful, systematic , patient study and investigation in some field of knowledge, undertaken to establish facts or principles” (Grinnell, 1993:4)

• “A systematic and objective attempt to study a problem for the purpose of deriving general principles”

( Theodorson & Theodorson 1969.347)

• It is a systematic investigation to find solutions to a problem (Robert Burns, 2000;3)

• It is a discovery (Rediscovery); A voyage from the known to the unknown

• An effort to be closer to the truth

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What is research?

a. The systematic investigation into and study of materials, sources, etc, in order to establish facts and reach new conclusions.

b. An endeavour to discover new or collate old facts etc. by the scientific study of a subject or by a course of critical investigation. [Oxford Concise Ddictionary]

Scientific Research

• Theories and observations are the two pillars of science. Science refers to a systematic and organized body of knowledge in any area of inquiry that is acquired using “the scientific method”

• scientific research operates at two levels:

– A theoretical level

The theoretical level is concerned with developingabstract concepts about a natural or socialphenomenon and relationships between thoseconcepts (i.e., build “theories”),

– An empirical level.

– the empirical level is concerned with testing thetheoretical concepts and relationships to see howwell they reflect our observations of reality, withthe goal of ultimately building better theories.

Scientific Research

Scientific Method

The Cycle of Research

Scientific method: Walter Walace, 1971,

Theory

Hypotheses

Observation

Empirical Generalization

Source: Babbie, 2007,23.

I

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d

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D

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Deductive Approach: Top Down

Theory

Hypothesis

Observation

Confirmation

Inductive Approach: Bottom up

Theory

Hypothesis

Pattern

Observation

• Scientific inquiry may take one of two possibleforms:

• Inductive

– In inductive research, the goal of a researcher is toinfer theoretical concepts and patterns fromobserved data (theory-building research).

• Deductive.

– In deductive research, the goal of the researcher isto test concepts and patterns known from theoryusing new empirical data (theory-testingresearch).

The ‘scientific’ method

• A generally accepted set of procedures for developing and testing theories

• An idealised model to arrive at “the truth” through:

– Objective observation(researcher remains detached from his emotions, prejudices, needs and guard his baises.

– Measurement

– Careful and accurate analysis of data

– Minimising pre-conceptions about how the world works

Maylor and Blackmon (2005)

The scientific method must satisfy four characteristics:

• Replicability:

– Others should be able to independently replicate or repeat a scientific study and obtain similar, if not identical, results.

• Precision:

– Theoretical concepts, which are often hard to measure, must be defined with such precision that others can use those definitions to measure those concepts and test that theory.

Cont,Falsifiability:

A theory must be stated in a way that it can be disproven.Theories that cannot be tested or falsified are not scientifictheories and any such knowledge is not scientific knowledge.A theory that is specified in imprecise terms or whoseconcepts are not accurately measurable cannot be tested,and is therefore not scientific.

Parsimony:

When there are multiple explanations of a phenomenon,scientists must always accept the simplest or logically mosteconomical explanation. This concept is called parsimony or“Occam’s razor.” Parsimony prevents scientists from pursuingoverly complex or outlandish theories with endless numberof concepts and relationships that may explain a little bit ofeverything but nothing in particular.

Features of research paradigms

Positivistic paradigm Phenomenological paradigm

Tends to produce quantitative data Tends to produce qualitative data

Uses large samples Uses small samples

Concerned with hypothesis testing Concerned with generating theories

Data is highly specific and precise Data is rich and subjective

The location is artificial The location is natural

Reliability is high Reliability is low

Validity is low Validity is high

Generalises from sample to

population

Generalises from one setting to

another

The Positivistic approach

Adapted from Maylor and Blackmon (2005)

Define your research topic

Define your research question(s)

i.e. hypothesis

Literature review

Collect data

Analyse data

Interpret results

Report your findings

Design data collection

Design data analysis

Pilot study

Deductive

The Phenomenological approach

• A generally accepted set of procedures for collecting information about the world

• An idealised model to arrive at “the data” through:

– Subjective observation

– Being led by the data (ie. induction)

– Trying to overcome biases about the situation

– Avoiding conceptual frameworks or instruments that

might influence what is observed

Maylor and Blackmon (2005)

The Phenomenological approach

Adapted from Maylor and Blackmon (2005)

Define your research topic

Define your research question(s)

Literature review

Collect data

Literature reviewAnalyse data

Interpret data

Report your findings

Research question answered?

Design data collectionInductive

Comparing approaches

Adapted from Maylor and Blackmon (2005)

Characteristic Positivism Phenomenology

Questions that can be answered

What?

How much?

Why?

How?

Associated methods

Survey,

Experiment

Direct observation,

Interviews,

Participant observation

Data type Predominantly numbers Predominantly words

Finding Measure Meaning

Source: © Mark Saunders, Philip Lewis and Adrian Thornhill 2006

The research ‘onion’

Characteristics of a Research (scientific method)

• It is controlled. In real life for an outcome there could be many affecting factors. In a study of cause and effect relationships one has to link effects with causes and causes with effects.

– Establishment of this linkage is impossible unless it is a laboratory test Therefore instead of controlling external factors we have to quantify the impact of such factors.

Contd.,

• It is rigorous. Procedures followed to find answers to a problem must be relevant, appropriate and justifiable. Researcher needs to be very careful about this.

• It is systematic. Procedures adopted for a research should follow a logical sequence. Attempting to find all relevant data in a organized way to be able to drawn reliable conclusions.

• It should be valid and verifiable. Your research conclusion based on findings should be correct and can be verified by you as well as others.

Contd.,

• It is empirical. The conclusions of the research should be based on evidence gathered from information collected from real life experiences/ observations( not on speculation)

• It is critical. Research procedures and methods applied should withstand critical scrutiny. They must be foolproof and free from drawbacks

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OBJECTIVES OF RESEARCH

The purpose of research is to discover answers to questions through the

application of scientific procedures. The main aim of research is to find out the truth

which is hidden and which has not been discovered as yet. Though each research

study has its own specific purpose, we may think of research objectives as falling

into a number of following broad groupings:

1. To gain familiarity with a phenomenon or to achieve new insights into it

(studies with this object in view are termed as exploratory or

formulative research studies);

2. To portray accurately the characteristics of a particular individual,

situation or a group-to study individual and social action (studies with this

object in view are known as descriptive research studies);

3. To determine the frequency with which something occurs or with which it

is associated with something else (studies with this object in view are

known as diagnostic research studies);

4. To test a hypothesis of a causal relationship between variables (such

studies are known as hypothesis-testing research studies).

MOTIVATION IN RESEARCH

What makes people to undertake research? This is a question

of fundamental importance. The possible motives for doing

research may be either one or more of the following:

1. Desire to get a research degree along with its

consequential benefits

2. Desire to face the challenge in solving the unsolved

problems, i.e., concern over practical problems initiates

research;

3. Desire to get intellectual joy of doing some creative work;

4. Desire to be of service to society;

5. Desire to get respectability

(educational/personal/Institutional/Political etc)

Difference between data collection method and techniques

TYPES OF RESEARCH

The basic types of research are as follows:

(i) Descriptive vs. Analytical

(ii) Quantitative vs. Qualitative:

(iii) Conceptual vs. Empirical:

(iv) Some Other Types of Research:

(i) one-time research or longitudinal research.

(ii) field-setting research or laboratory research or

simulation research

(i) clinical or diagnostic research

Two Types of Research

• Quantitative

– Experimental

– Surveys (usually)

• Qualitative

– Biography, phenomenology, grounded theory, ethnography & case study

• Mixed methods

– You can’t account for context with numbers

– The plural of anecdote is not data

Qualitative Quantitative

The aim of qualitative analysis is a

complete detailed description.

In quantitative research we classify

features, count them, and construct

statistical models in an attempt to

explain what is observed.

The design emerges as the study

unfolds

All aspects of the study are carefully

designed before data is collected.

Researcher is the data gathering

instrument.

Researcher uses tools (questionnaires

or equipment) to collect data.

Data is in the form of words

(interviews), pictures (videos), or

objects (artifacts).

Data is in the form of numbers and

statistics.

Qualitative data is more rich, time

consuming, and less able to be

generalized.

Quantitative data is more efficient,

able to test hypotheses, but may miss

contextual data.

Research Process

Research process- Steps

• 1. Formulation a of a research problem

• 2. Creation of a research design

• 3. Constructing instruments for data collection

• 4. Selecting a sample

• 5.Writing the research proposal

• 6. Collecting data

• 7. Processing data

• 8. Writing the report

Formulating research problem

• Tasks:

• Literature review

• Formulating the research problem

• Identifying variables

• Constructing hypotheses

Literature review

• To make your research problem clear and bring focus into it

• Develop your methodology

• To know where you are

• To have a broader knowledge in your area of research

Contd.,

• Search and select literature pertaining to your area

• Review selected literature

• Develop a theoretical framework (theories and issues related your study)

• Develop a conceptual framework (aspects you select from theoretical framework that form the basis of your research)

Contd.,

• Sources:

• Books

• Journals

• Electronic resources: online and offline

How to write the literature review

• Write under themes

• Some may follow chronological order

• Highlight your arguments

• Provide references

Formulating research problem

• Any question that needs answer can be a research problem. However, not all questions can be transformed into research problems.

• What matters here:

• Your knowledge in research methodology

• Your knowledge of the subject area

• Your understanding of the issues to be examined

Contd.,

• Formation of a research problem is the first step in the research. Identify the destination before you start the journey. It is the foundation of your building.

• Sources of research problems:

• People (individuals, groups, organizations, communities)

• Problems (Issues, situations, associations,, needs, demographic)

Contd.,

• Programmes (contents, structure, outcomes, attributes, satisfaction, users, consumers)

• Phenomenon (cause and effect relationships, study of a phenomenon itself)

• Research problem is your topic.

• Consider the following when selecting a topic:

• Your interest

• Your level of expertise as well as of your supervisor

Contd.,

• Use concepts that can be measured

• Topic should be relevant to your profession/ subject area

• Availability of data

• Ethical issues

Formulation of objectives

• Objectives are goals of your study

• Main objectives

• Secondary or sub-objectives

• They must be clear, complete and specific

Identifying variables

• A concept or perception that takes on different values and that can be measured is a variable. It is something that varies.

• Types:

• Independent variables (they are responsible for bringing about change in a phenomenon, situation)

Contd.,

• Dependent variables (effects of a change variable, the outcome of the changes brought about by changes in an independent variable)

• Extraneous variables (other factors that affect the changes bring about by independent variables)

• Intervening variables (those that link the independent and dependent variables)

Constructing hypotheses

• It is an ‘anticipation of nature’ or a hunch, assumption, assertion

• “a tentative statement about something, the validity of which is usually unknown’ (Bailey, 1976:126)

• It may be right, partially right or wrong

• It should be simple, specific and conceptually clear

Research design

• It is the plan, structure and strategy of investigating the research problem

• It is an operational plan

• Procedures to be adopted

• Testing the design

Constructing an instrument for data collection

• Data collection methods:

• Primary sources

• Observation

• Interview

• Questionnaire

• Use of secondary sources

• Establish the validity of the selected instrument

Selecting a sample

• “Process of selecting a few from a bigger group”

• Bigger group is the population and the selected few is the sample

• Larger the sample size the more accurate will be the findings

Sampling types

• Sampling strategies are numerous. They can be categorized into three groups:

• Random/probability sampling

• Non-random/probability sampling

• Mixed sampling

Research proposal

• It is your plan of research

• It reveals what you are going to do, how you plan to do and why you have selected the proposed procedures

• It guides you as well as your supervisor

• It is an academic piece of writing

• It shows the strength of your proposed research

Elements

• Introduction (an overview of the main area under study, historical background, philosophical issues etc., trends, major theories, main issues under consideration etc.)

• Importance (Why you do it? What are the benefits?)

• Problem (Your research problem or the research questions)

• Literature review

Contd.,

• Objectives ( main and secondary)

• Hypotheses

• Study design (population, sample, data collection methods etc.)

• Setting (brief description of the community, organization or agency in which you are going to carry out the research)

• Analysis of data (methods you are going to use)

Contd.,

• Structure of the report or chapterization

• Limitations and problems you may encounter

• Work plan or schedule

• Budget (optional)

Collection data

• Ethical issues relating to research participants ( their consent, incentives, sensitive information, harm to participants etc.)

• Ethical issues relating to the researcher (avoiding bias, using appropriate research methodology, correct reporting etc.)

Processing data

• Editing data

• Coding data

• Verifying coded data

• Analyzing data

• Displaying data (charts, diagrams, tables)

Writing the report or thesis

• Follow standards (International standards or departmental guidelines)

• Use appropriate referencing/citation system

• Preparation of a bibliography

• Avoid plagiarism

• Sources:

• Kumar, Ranjit (1999). Research methodology : a step by step guide for beginners, 2nd. ed., Sage, London

• Kothari, C.R. (1990). Research methodology : methods and techniques, 2nd. Ed., Wishwa Prakashan, New Delhi

• http://www.slideshare.net/rajankila/research-methods-in-social-sciences-an-overview