Research Method for Economics Introduction

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1 Research Method for Economics Introduction Dr. Seetha Bandara Dept. of Economics

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3 What is research? Depending on who you ask, you will likely get very different answers. Some people will say that they routinely research different online websites to find the best place to buy goods or services they want. Television news channels supposedly conduct research in the form of viewer polls on topics of public interest such as forthcoming elections or government-funded projects. Undergraduate students research the Internet to find the information they need to complete assigned projects or term papers.

4 What is research? Graduate students working on research projects for a professor may see research as collecting or analyzing data related to their project. However, none of the above can be considered scientific research unless: (1) it contributes to a body of science, and (2) it follows the scientific method.

5 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. 5

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7 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 ) 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

8 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] 8

9 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

10 Scientific Research scientific research operates at two levels: A theoretical level The theoretical level is concerned with developing abstract concepts about a natural or social phenomenon and relationships between those concepts (i.e., build theories ), An empirical level. the empirical level is concerned with testing the theoretical concepts and relationships to see how well they reflect our observations of reality, with the goal of ultimately building better theories.

11 Scientific Method

12 The Cycle of Research

13 I n d u c t i o n Scientific method: Walter Walace, 1971, Theory Empirical Generalization Observation Hypotheses D e d u c t I o n Source: Babbie, 2007,23.

14 Deductive Approach: Top Down Theory Hypothesis Observation Confirmation

15 Inductive Approach: Bottom up Theory Hypothesis Pattern Observation

16 Scientific inquiry may take one of two possible forms: Inductive In inductive research, the goal of a researcher is to infer theoretical concepts and patterns from observed data (theory-building research). Deductive. In deductive research, the goal of the researcher is to test concepts and patterns known from theory using new empirical data (theory-testing research).

17 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)

18 The scientific method must satisfy Replicability: four characteristics: 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.

19 Falsifiability: Cont, A theory must be stated in a way that it can be disproven. Theories that cannot be tested or falsified are not scientific theories and any such knowledge is not scientific knowledge. A theory that is specified in imprecise terms or whose concepts 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 most economical explanation. This concept is called parsimony or Occam s razor. Parsimony prevents scientists from pursuing overly complex or outlandish theories with endless number of concepts and relationships that may explain a little bit of everything but nothing in particular.

20 Features of research paradigms Positivistic paradigm Phenomenological paradigm Tends to produce quantitative data Uses large samples Concerned with hypothesis testing Data is highly specific and precise The location is artificial Reliability is high Validity is low Generalises from sample to population Tends to produce qualitative data Uses small samples Concerned with generating theories Data is rich and subjective The location is natural Reliability is low Validity is high Generalises from one setting to another

21 The Positivistic approach Define your research topic Define your research question(s) i.e. hypothesis Literature review Deductive Design data collection Design data analysis Pilot study Collect data Analyse data Interpret results Report your findings Adapted from Maylor and Blackmon (2005)

22 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)

23 The Phenomenological approach Define your research topic Define your research question(s) Literature review Inductive Design data collection Collect data Analyse data Literature review Interpret data Research question answered? Report your findings Adapted from Maylor and Blackmon (2005)

24 Comparing approaches 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 Adapted from Maylor and Blackmon (2005)

25 The research onion Source: Mark Saunders, Philip Lewis and Adrian Thornhill 2006

26 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.

27 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.

28 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

29 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). 29

30 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)

31 Difference between data collection method and techniques

32 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

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35 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

36 Qualitative The aim of qualitative analysis is a complete detailed description. The design emerges as the study unfolds Researcher is the data gathering instrument. Data is in the form of words (interviews), pictures (videos), or objects (artifacts). Qualitative data is more rich, time consuming, and less able to be generalized. Quantitative In quantitative research we classify features, count them, and construct statistical models in an attempt to explain what is observed. All aspects of the study are carefully designed before data is collected. Researcher uses tools (questionnaires or equipment) to collect data. Data is in the form of numbers and statistics. Quantitative data is more efficient, able to test hypotheses, but may miss contextual data.

37 Research Process

38 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

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40 Formulating research problem Tasks: Literature review Formulating the research problem Identifying variables Constructing hypotheses

41 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

42 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)

43 Contd., Sources: Books Journals Electronic resources: online and offline

44 How to write the literature review Write under themes Some may follow chronological order Highlight your arguments Provide references

45 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

46 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)

47 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

48 Contd., Use concepts that can be measured Topic should be relevant to your profession/ subject area Availability of data Ethical issues

49 Formulation of objectives Objectives are goals of your study Main objectives Secondary or sub-objectives They must be clear, complete and specific

50 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)

51 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)

52 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

53 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

54 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

55 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

56 Sampling types Sampling strategies are numerous. They can be categorized into three groups: Random/probability sampling Non-random/probability sampling Mixed sampling

57 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

58 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

59 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)

60 Contd., Structure of the report or chapterization Limitations and problems you may encounter Work plan or schedule Budget (optional)

61 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.)

62 Processing data Editing data Coding data Verifying coded data Analyzing data Displaying data (charts, diagrams, tables)

63 Writing the report or thesis Follow standards (International standards or departmental guidelines) Use appropriate referencing/citation system Preparation of a bibliography Avoid plagiarism

64 Sources: Kumar, Ranjit (1999). Research methodology : a step by step guide for beginners, 2 nd. ed., Sage, London Kothari, C.R. (1990). Research methodology : methods and techniques, 2 nd. Ed., Wishwa Prakashan, New Delhi

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