1.

THE FOUNDATION OF ECONOMIC RESEARCH

INTRODUCTION

In this unit I shall introduce you the Scientific method and the conceptual definition of
research and why we study research method. The purpose and types of research. Criteria of a
good research and time dimensions in research will also to be discussed. Please, read
carefully, and make sure that you have achieved the following objectives after studying this
unit.

Objectives
After studying this unit, you will be able to:
 explain the meaning and criteria of a good research
 explain the purpose and types of research
 describe why we need to study Research methods
The Scientific Method and Social Research
 In order to have a clear perception of the term research, it is important to know the
meaning of Scientific method and what makes research scientific since research and
scientific method are closely related. Infarct, research methodology is what makes
social science research scientific. Hence, for your understanding of how it is helpful
to make research scientific, you need to know about its meaning. In this section you
will study about the scientific method in social research.

1.1. What is scientific Method?

Every society today is faced with serious social, economic and political problems, which
need systematic, intelligent and practical solution. Since these problems deal with human
beings, who are both unpredictable and undependable in behavior, therefore, different
methods become unavoidable in finding the truth. Methodology in social research has
thus come to stay as an integral part of social research.
 Definition 1

Scientific method is the method of gathering data, making guesses as to what the data
might mean i.e. formulating a tentative explanation of the facts and then proceed with
theory as a guide for further investigations to see whether the idea would be
supported or proved wrong by the additional evidence, which could be gathered.

In short by, scientific method, we mean it is an effort to achieve increasing the understanding
of phenomena by involving a series of the following steps.
 Identification of the problem to be investigated
 Obtaining information essential for dealing with these problems.
 Analyzing and interpreting these data in accordance with clearly defined rules, and
 Communicating the results of this effort to others.

Defining problems __________ Obtaining information

Scientific method Analysis and interpretation

Communicating the result

Can you mention some common guiding principles that the researcher follow to
conduct scientific research?
▪ The Scientific method is a conscious method or planned procedure that has proved to
be very useful in modern research. The researchers in order to arrive at conclusion result
and communicating the results of this effort to others they have to follow scientific
method which is free of personal bias or prejudice. Hence, the researchers follow some
common guiding principles, which are useful in the scientific method.

These include:
 The scientific methods is based on empirical evidence
 Utilizes relevant concepts
  The method is committed only on objective considerations
 It presupposes ethical neutrality i.e. it aims at nothing but making only adequate and
correct statements about population objectives
 It practices logical reasoning
 It results in to probabilistic predictions
 Its methodology is made known to all concerned for critical scrutiny and for use in
testing the conclusions through replications.
 It aims at formulating most general axioms or what can be termed as scientific
theories
 It requires the possession of skeptical attitudes

Thus, knowledge of scientific method in social research is important:

▪ to gain knowledge of the social world

▪ to search the truth as determined by logical considerations

▪ to achieve increasing understanding of Phenomena

Now, will you please try to do the following activity?

Check list
Put a tick (√) in the box for tasks that you can perform
1. Can you define the scientific method in social research...?
2. Can you explain the advantages of scientific method?
3. Can you list the steps of scientific approach?
4. Can you list at least some common guiding principles of a researcher in scientific
method................................................................?

Is there any box that you marked ' No' under it?
If there is, please go back to your text again and read about it before you go to the following
exercise.
Conceptual Definition and Criteria of a Good Research

Research is an art of scientific investigation. Hence, research is a means by which you will be
able to acquire knowledge to solve economic problems through discovering new facts or
verifying the old facts systematically.

For your understanding of how it is helpful to a acquire knowledge and solve economic and
social problems through discovering facts, you need to know about its meaning and the
methods that are used to accomplish the examination of a given economic and social
phenomenon. It is about these points that this section is discussing.
Objectives
After Completing this Section, you will be able to:

 Define research
 List the possible motives for doing research
 List the criteria of a good research
 List the characteristics of Research.

a. Definition of Research
Research is a scientific empirical, logical and systematic search for pertinent information on a
specific topic. In general, research is an academic activity and thus requires a technical
definition. Hence, the research activity comprises the following activities; the defining and
redefining of the problem ,the formulation of hypotheses or suggested solutions, the
collection, organization and evaluation of data or facts, the making of deductions and
reaching conclusions, and carefully testing the conclusions to determine if they fit the
formulated hypotheses. Research is thus an original Contribution to the existing stock of
knowledge making for its advancement.

You may observe many economic problems in your own life and in your surroundings. For
example, the persistent increase in the price of durable goods, increase in the number of
unemployed people from time to time, increase in the price of fuel and, in turn increase the
cost of transportation...........etc.
To deal with one or more of those problems and to reach at a solution you can conduct
research. In conducting your research, you will follow the steps of scientific method and
principles that are mentioned earlier so that research is a systematic attempt to obtain answers
to questions which face the society through the application of scientific methods as
procedures.

WHAT IS RESEARCH?
Definitions
- Research is composed of two words ’re’ and ‘search', which means to search again, or to
search for new facts or to modify older ones in any branch of knowledge.
- Research can be defined as any scholarly investigation search for truths, or for certainties.
- Research is essentially a systematic inquiry seeking facts through objective verifiable
methods in order to discover the relationship among them and to deduce from it the broad
principles laws.
- Research refers to a critical and exhaustive examination investigation of experimentation
having as its aim the revision of accepted conclusions in the light of new discovered facts.
- Research is the process of arriving at dependable solutions to problems through the
planned and systematic collection, analysis, and interpretation of data.
 The best research should be reliable, verifiable, and exhaustive.
 Research starts with a problem, collects data or facts, analyzes them critically,
and reaches decisions based on the actual evidence.
One respected author defines scientific research as a ''systematic, controlled, empirical, and
critical investigation of natural phenomena.'' The terms systematic and controlled in this
definition refer to the degree to which the observations are controlled and alternative
explanations of the outcome are ruled out. The terms empirical and critical point to the
requirements for the researcher to test subjective beliefs against objective reality and have
the findings open to further scrutiny and testing.

Research is a systematic inquiry aimed at providing information to solve problems. Business

research is therefore, a systematic inquiry that provides information to guide business
decisions.

Research
- Provides an analytical framework for subject of investigation.
- Establishes the relationship between different variables, especially the relationship between
the dependent variables and the independent variables.
- Involves collection of data from primary and secondary sources and expresses them in
quantitative terms.
- Stimulates the process of understanding on the one hand and deepens the insight on the
other.
- Should be objective and logical, applying every possible test to verify the data collected and
the procedures employed.
 Purpose of research is to solve human being's problems, researches, which don't serve
human kind, are of no use.
 Research should never be treated as a piece of compilation work. By reading a number
of books and compiling their material is yet another book; no research. Research is
always expected to be something original that advances human knowledge.
The concept of research in its modern setting is held to be consisting of the following things.
 Avenue of quest. inquisition or investigation;
 Specific or well defined domain;
 A well laid hypothesis,
 Capable of being based upon observable data;
 Scientific techniques of collecting analysis of data; and
 Logical interpretation of results.

Is Research always problem based?

All types of research should provide an answer to some question. The two major types of
research are described briefly as follows.
1. Applied Research
- is type of research that has a practical problem-solving emphasis.
- is conducted to reveal answers to specific questions related to action, performance, or
policy needs.
- is also known as field research.
- is very popular as it aims to solving the problem at hand .
2. Pure Research
- is also solving but in a different sense.
- aims to solve perplexing problems(questions) of a theoretical nature that have little
direct impact on action, performance, or policy decisions.
 - is usually conducted to develop theories, principles, and laws that are found in
different subjects (areas) and helps to extend the frontiers of knowledge.
- is used to understand natural phenomenon, but not to solve problems directly and
immediately.
- is also known as basis or fundamental research.

Thus both applied and pure researches are problem based, but applied research is directed
much more to making decisions. Research is directed towards a solution of problems. It may
attempt to answer a question or to determine the relation between two or more variables.
Hence, in all types of research, whether pure or applied, Simple or complex, all research
should provide an answer to some question.

Reasoning
Scientific inquiry has been described as a puzzle - solving activity. For the researcher,
puzzles are solvable problems which may be clarified or resolved through reasoning.

Deductive Reasoning
Deduction is a form of inference which purports to be conclusive; the conclusion must
necessarily follow from the reasons given. These reasons are said to imply the conclusion and
to represent a proof. Hence, deductive reasoning is a thinking process in which one will go
from the general statements to specific statements or theory to facts. It is a means to evaluate
the correctness of any given conclusion or idea by going from the general to the particular.
For a deduction to be correct, it must be true and valid. That is, the premises (reasons) given
for the conclusion must agree with the real world. In addition, the premises must be arranged
in a form such that the conclusion must necessarily follow from the premises.
Consider the following examples.
Example 1.
Premise 1 - All regular employees can be trusted not to steal
Premise 2- Abebe is a regular employee

What conclusion can you have from the above Statements? Let you try please.
Have you tried? That is good.
The conclusion will be, from the general statement, i.e. all regular employees can be trusted
not to steal, and one can produce a specific facts, like Abebe can be trusted not to steal.
Example 2
Premise 1. The demand for normal gods increase if income of the consumers increase.
Premise 2. Food is a normal good

What conclusion can you derive from the above Statements? Have you tried? All
right. The conclusion will be, from the general statement, i.e. the demand for normal goods
increase if income increases, one can produce a specific facts, like the demand for food
increases if income of the consumer increases.

1.2.2.1. Inductive Reasoning

In induction, there is no such strength of relationship between reasons and conclusions. To
induce is to draw a conclusion from one or more particular facts for pieces of evidence. The
conclusion explains the facts, and the facts support the conclusion. In short, inductive
reasoning goes from specific to general. Here conclusions will be given by observing
particular situations and generalizing from them to the whole phenomenon.

Example
1. You push the light switch and find no light.
2. You ask the question, why no light?
3. You induce a conclusion hypothesis to answer the question of explain the fact that the
bulb is burned-out.
4. From this we conclude that a burned - out bulb will not light.

1.3. Motivation in research

The question what makes people to undertake research is of a paramount importance. The
possible motives for doing researches may be either one or more of the following.
1. Desire to get a research agree 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 in-service to society.
5. Desire to get respectability.
The above factors are not by any means an exhaustive list of factors motivating people to
undertake research studies other factors that may make people to perform research operations
include;
 Directives of the government
 Curiosity about new things
 Desire to understand casual relationships
 Social thinking and awakening etc.

b. Criteria of a good research

Good research can be thought of as that which uses the scientific method. Whatever may be
the types of research, one thing that is important is that they all meet on the common ground
of scientific method employed by them.

1. The purpose of the research or the problem involved; should be clearly defined and
sharply delineated interms as unambiguous as possible. The statement of the research
problem should include analysis in to its simplest elements, its scope and limitations,
and precise specifications of the meanings of all words significant to the research. The
researcher should have sufficient understanding of the problem that he / she is interested
to deal to make a sound attack upon it.

2. The research procedures used should be described in sufficient detail to permit another
researcher to repeat the research.

You may raise a number of questions like "What are the causes of unemployment?" Who are
more exposed to unemployment? Do or literate or illiterate? A good research in order to
overcome such types of national interest questions should have reliable data from different
sources. It may be primary or secondary. Hence the research reports should reveal the
sources of data and the means by which they were obtained. This is because; any other
interested researcher can refer the data for further study or for any new finding. Hence
admission of significant procedural details makes it difficult to estimate the validity as
reliability of the data and justifiably weakens the confidence of the reader in research. A
research to be a good research should follow a procedure which is sufficiently described
which permit another researcher to repeat the research as the source.
3. The procedural design of the research should be carefully planned to yield results that are
as objective as possible.

▪ If you want to compare consumption expenditure between low in-come and high income
people of the region, what data and number of people do you need as the sample? Think
about it please?
Have you thought about it? In order to compare consumption expenditure between low
income and high income people, at least you need to have the expenditure of low income and
high income people in different time periods together with the total income. The researcher
may collect the data from each member of the people or by selecting the representative
sample from the total population. Depending up on the size of the population under study and
the time and resource that the researcher has, the research may be conducted using the data
from the representative sample or the population. When a sampling of the population is
involved, the report should include evidence concerning the degree of representativeness of
the sample. For example, for the above case the researcher may take the total number of low-
income and high income people with in the region or take representative sample from the
total low income and high income population with in the region.

4. The researcher should report, with complete frankness, flows in procedural design and
estimate their effect up on the findings.
5. The analysis of the data should be sufficiently adequate to reveal its significance, and the
methods of analysis used should be appropriate.

The validity and reliability of data should be checked carefully. The data should be classified
in ways that assist the researcher to reach pertinent conclusions.

6. Conclusions should be confined to those justified by the data of the research and imited
to those for which the data provide an adequate basis.

Researchers are often tempted to broaden the basis of inductions by including personal
experiences not subject to the controls under which the research data were gathered. This
tends to decrease the objectivity of the research and weaken confidence in the findings.
Equally undesirable is all- too - frequent practice of drawing conclusions from a study of a
limited population and applying them universally. Good researchers specify the conditions
under which their conclusions seem to be valid. Failure to do so justifiably weakens
confidence in the research.
7. Greater confidence in the research is warranted if the researcher is experienced, has a good
reputation in research, and is a person of integrity.
Sufficient information about the researcher would be one of the best bases for judging the
degree of confidence a piece of research warrants. For this reason, the research report should
be accompanied by more information about the qualification of the researcher than is the
usual practice. Some evidence pertinent to estimates of the competence and integrity of the
researcher may be found in the report itself. These seven criteria provide an excellent
summary of what is desirable in research. Detail discussion on each part will be given in the
coming sections.

Outline (Summary) for criteria of Good Research:

Criteria for Good Research

Novelty. It should be sufficiently original so that it does not involve objectionable

duplication. Ignorance of prior studies may lead s student to spend time a problem already
investigated. The study should also employ the most recent data. Although originality is an
important consideration, there is also a constant need for verification of the findings of the
previous investigation, using newer and better devices and procedures. There is also a need
for the testing of former findings under changed conditions.

Interesting. The problem should be interesting for the investigator him /herself. If she/he is
not interested in it, she/he will not be able to face and overcome the obstacles, which come at
every step in research. His/her interest should be purely intellectual and should not be there
only for a reward material benefit, advancement in position, increased authority, etc.

Importance. If it is not worthwhile, it neither adds to knowledge nor lead to any

improvements in the current practices, it would be in vain. It should add to the development
of social set-up as a discipline

Feasibility or Amenability. The suitability of the problem for a particular research worker is
the matter of its feasibility. The investigator should be able to carry it to a successful
conclusion. She/he should possess the required competence, knowledge and understanding.
She /he should be skillful enough to develop, administer, and interpret the necessary date-
gathering devices and procedures, etc.

Availability of Data. The researcher should ensure the availability of data and of valid and
reliable data gathering devices and procedures.

Availability of cooperation. Because the study may need administration of test,

interviewing, observation, going through records, conducting experiments, etc, there should
be cooperation.
Availability of Guidance Every research activity needs the patronage of a guide and the
approval and sanction of a competent authority.

Availability of other Facilities. The smooth running of research work presupposes the
availability of necessary facilities and adequate fund. There should also be enough time to
complete the project. This is so because selection a problem, library study, preparing the data
gathering devices, collecting and analyzing the data, writing the research report, etc are all
time consuming processes.

Immediate Application. The investigator should ask himself/herself question" will my

research help in solving an urgent problem?"

Level of Research. In student research, for example, the nature and scope of a study will be
determined in the light of levels like Bachelor, Mater's and PHD Degrees.

Experience and creativity. Lack of familiarity with the subject is almost sure to result in a
poor choice. Through familiarity with a given field is conductive to original thinking and
creativity.
Courage and confidence. The researcher should be sure of himself/herself has the courage
and confidence to purse the study despite the difficulties and social hazards that may be
involved. He/she should also have courage to work aggressively even when data are difficult
to gather and when others are reluctant to cooperate.
 In short, a research to be good research, it can be thought of as that which

uses the scientific method and meet the seven criteria.

Characteristics of Research

Despite the fact that different types of researches have different characteristics, the following
are common to all types of researches.

A. research is a scientific, empirical, logical and systematic search for pertinent

information and a specific topic. In other words, research is directed towards the solution of a
problem. It may attempt to provide an answer for a question that the researcher is interested.

You may raise many questions. Like "what are the factors that cause population to increase
from time to time? ", "What is the economic impact of population growth?" When you
engage in research, the objective is to find answers to such types of questions.

b. Research involves gathering of data .The gathering of data may range from relatively
simple observation at one location to a grand survey of multinational corporations at sites in
different parts of the world.

If you want to know the unemployment rate of the region, what data you need to have?
Have you thought about it? Good. In order to know the unemployment rate of the region, at
least you need to have the total number of productive labor force as the number of workers
who are capable to work but unable to find job. You can collect these data from secondary
documents. Researchers may collect new data or use existing data for new purposes. For
example, for the above case, the researcher may collect the data from secondary sources such
as documents, journals, research papers etc and from primary sources such as interview,
direct observation etc.
c. Research emphasizes the development of generalizations, principles, or theories that
will be helpful in predicting future occurrences. If answers to a research question go to the
same direction repeatedly, it will enable us to formulate generalization.
d. research requires expertise. The researcher should be knowledgeable about how to
conduct research as well as about the issue that is being treated by the research. To know the
unemployment rate of the region or the country, the researcher should know the data or how
to collect these data. In addition to that the researcher should refer to other sources that
have been written about unemployment and its rate.

e. Research is characterized by carefully designed procedures. I.e. the research process

consists of a series of actions or steps that are necessary to effectively carry out research.

These are procedural guide lines which are listed as follows.

▪ Identification of research problem

▪ Extensive literature review
▪ Development of working hypothesis
▪ Preparation of research design
▪ Determination of Sample size
▪ Data collection
▪Execution of the project
▪ Analysis of data
▪ Hypothesis testing
▪Generalizations and interpretations
▪ Preparation of the report (Reporting of results)

A more detailed discussion of these series steps will be done in another Section.

f. research requires courage. A researcher may face difficulties while conducting a

research. Hence, a researcher should be courageous to face difficulties that he / she may
encounter when conducting research. For example, the researcher may not be allowed to get
data from some government or private organizations. The researcher may not be allowed to
interview government higher officials. Therefore, the researcher should not fear and stop his/
her effort while facing the problem. On the other hand, the research result may raise
questions and oppositions from some people. Say for example, the research result stated,
devaluation is the main factor that attracts foreign direct investment. This result may be
opposed by some other people that devaluation is not the main factor to attract foreign direct
investment. So that the researcher should be courageous to face questions and difficulties.

g. Research procedures should lead to valid conclusions. A research to be a valid research

it should be based up on facts or evidence. In general, validity can be seen in two respects.

In General Characteristics of Good Research includes the following:

- It is directed towards the solution of a problem.

- It emphasizes the development of generalization, principles or theories that will be
helpful in predicting future occurrences.
- It is based on observable experience or empirical evidence.
- It involves gathering new data from primary or firsthand sources or using existing
data for new purpose.
- It requires expertise. The researcher should know what is already known about the
problem and how others have investigated it.
- It strives to be objective and logical, applying every possible test to validate the
procedure employed, the data collected, and the conclusions reached.
- It is carefully recorded and reported and is characterized by patient and unhurried
activity.
- It requires courage, sometimes.

▪ External validity
The external validity of research findings refers to their ability to be generalized across
population. Suppose the population from which the sample is taken is 10000 in amhara
region and you want to study the main cause of poverty in the region in drought. Suppose you
fix 50 from the population as a sample in order to conduct the study.
In the result you found that drought is one cause but not the main cause of poverty in the
region.
 Based up on the above result, can you generalize in the region that drought is not the
main cause of poverty?

If you said No, the sample cannot represent 10000 people in the region. In such cases the
research result will lack external validity. External validity is therefore the extent to which
results of a research can be generalized to larger population.
- Internal validity - Internal validity is the extent to which differences found with a
measuring tool reflect true differences among those being tested.
Internal validity consists of three major forms:
- Content validity - the content validity of a measuring instrument is the extent to which
it provides adequate courage of the topic under study. If the instrument contains a
representative Sample of the universe of subject matter of interest, then content validity is
good. To evaluate the content validity of an instrument, one must first agree on what
elements constitute adequate coverage of the problem.

- Criterion - related validity - This form of validity reflects the success of measures
used for some empirical estimating purpose. You may want to
Predict some outcome or estimate the existence of some current behavior or condition.
- construct validity one may also wish to measure or inter the presence of abstract
characteristics for which no empirical validation seems possible. Attitude scales and
aptitude and personality tests generally concern concepts that fall in this category. Even
though this validation situation is much more difficult, there still needs to be some
assurance that the measurement has an acceptable degree of validity. In attempting to
evaluate construct validity we must consider both the theory of which the construct is a
part and the measuring instrument being used.
 External validity: The degree to which the results of a research can be
generalized to a large group.

Internal validity: The extent to which differences found with a

measuring tool reflect true differences among those being tested.

h. Research has a variety of forms

The types of problems are many and different in nature. To overcome these problems we
have to apply varying approaches and methods of research. Since economic problems are
many in nature, we have to apply economic research among different types of research.

c. The purpose and Types of Research

Why Study Business Research?
Research methods provide anyone with the knowledge and skills needed to solve the
problems and meet the challenges of a fast-paced decision making environment. Two factors
stimulate an interest in more scientific decision-making:
1. The manager's increased need for more and more/better in formation, and
2. The availability of improved techniques and tools to meet this need.
What is the purpose of the Study?
1. Reporting
- is the most elementary level.
- may provide an account or summation of some data, perhaps statistics that is readily
available.
- gives little inference or conclusion.
2. Description
- tries to discover answers to the questions of who, what, when, where, and sometimes
how
- attempts to describe or define a subject, often by creating a profile of a group of
problems, people, or events.
- may or may not have the potential for drawing powerful inferences.
- does not attempt to answer the question why.
 - is popular in business research because of its versatility across disciplines.
3. Explanation
- goes beyond description and attempts to explain the reason for the phenomenon that
the descriptive study only observed.
- tries to use theories or at least hypotheses to account for forces that cause a certain
phenomenon to occur.
4. Prediction
- is just rooted in theory as explanation
- would contribute to the development of better theory of the phenomenon.
- is found in studies conducted to evaluate specific courses of action or to forecast
current and future values.

In our last section we learned about the conceptual definition and criteria of research. Now let
us turn our attention to purpose and types of Research.

Objectives
At the end of this section you will be able to:
 Explain the purpose of Research
 List the different types of social research.
 State the nature of different types of social research

1.4. Purpose of Research

What is the purpose of Research?

Every Society today is faced with serious social, economic and political problems which
need systematic, intelligent and practical solution.

For example, population increase rapidly from time to time, the price of goods and services
increase from time to time and in return affect the economy adversely. The number of
unemployed productive workers increases from time to time. A number of people raise
questions in line with political instability, etc.

What do you think that different economic, political and social problems that the
society is faced are resolved? And would have been achieved Progress? Would have been
impossible without research. Every year new products, new facts, new concepts and new
ways of doing things come in to our lives as a result of research. For example, government
spend huge amount of funds to support research; manufacturers carry out research to discover
new products; agricultural experts perform experiments to find or develop new species of
plant life or new breeds of cattle that supply larger milk yield at low cost or that will prove
immune to disease. Different organizations may spend huge amount of money to conduct
different researches so as to overcome say drought related problems, unemployment, street
children--- etc. Research provides the society with better and faster transportation ,more
computable and cheaper housing, medicine to cure illness, improve the service of education,
provide clean water to the society, etc. one could go on almost endlessly predicting
numerous benefits which will certainly result if research is conducted.

In general, the purpose of research is to discover new ideas or solutions through the
application of scientific procedures. The purpose of research is to discover facts and ideas not
previously known to man. Research is carried out either to understand the fundamental nature
of social reality or apply new knowledge to address specific practical problem. Although each
research topic may have its own specific purpose, the purpose of research may be organized
in to three groups based on what the researcher is trying to accomplish.

The purpose of research may be:

i. explore a new topic ( exploration): To gain familiarity with a phenomenon or to achieve

new insight in to it, the researcher aims at formulating more precise questions that future
research can answer and discovering new insights. Exploratory research may be the first stage
in a sequence of studies. Exploratory research usually uses qualitative data and tends to be
more open using a range of evidence and discovering new issues.

ii. Describe a social phenomenon (description): descriptive research presents a picture of

the specific details of a situation, social settings, or relationship to portray the characteristics
of a particular individual or situation or a group. Descriptive researchers use surveys, field
research to generate the data usually quantitative data is analyzed using descriptive statistics.
Such research focuses on how and who questions (how did it happen and who is involved).

iii. Explain (Explanation) why some thing has happened. This is a diagnostic and
hypothesis testing research study and build on exploratory and descriptive research and goes
on to identify reasons why something occurs.
Example: Small farmers sell only up to 15 percent of their products is a part of descriptive
research. Why farmers sell only 15 percent of their output is part of an explanatory by
research.

The purpose of research is to discover new ideas or solutions through the

application of scientific procedures.
The purpose of research may be to:
- explore a new topic ( Exploration)
- describe a social phenomenon ( description)
- explain ( explanation) why some thing has happened.

d. Types of Research
Different people may use different classification systems. The classification may be in terms
of methods employed, in terms of the time dimension, in terms of research environment or in
terms of data used. Accordingly, several types of research classification could be identified.

Descriptive versus analytical Research

Descriptive Research

Descriptive is the state of surveying and fact finding enquiries of different kinds as it is.
Hence, descriptive research is the description of the state of affairs as it exists at present. The
main characteristics of this method are that the researcher has no control over the variables.
The researcher can only report what has happened or what is happening.
Example: The frequency of shaping the preference of people, research on behavioral studies;
research on attitude, habit of the people etc. In some cases researchers attempts to discover
causes even when they cannot control the variables.

1.7.1.2. Analytical Research

In analytical research, the research (investigator) uses factor information already available
and analyses the fact to make a critical evaluation of the results. Here, one’s own evaluation
or assessment comes in order to interpret the research.

Descriptive Research:- A type of research that tries to discover answers to the

questions of who, what, when, where and sometimes, how. Hence, descriptive
research is the description of the state of affairs as it exists.
Analytical Research:- a type of research that analyse the fact to make a critical
evaluation of the results.
Applied versus Fundamental research

Applied Research:
Applied research is also known as action research. The central aim of applied research is
directed to the solution of immediate, Specific and practical problems. When we say an
immediate problem, we mean practical problem which faces a society at large or a plant or an
enterprise. Therefore, in order to overcome such type of problem, one has to take immediate
action through applied research. The findings of applied research will be evaluated interms of
local applicability and not interms of universal validity.

1.7.2.2. Fundamental Research

It is also known as pure or the article research. The central objective of this research is
formulation of theory or contribution to the existing body of knowledge. It is original break
through new discovery adding to the already existing body of scientific knowledge. It does
not necessarily provide results of immediate practical use. This research is done mostly by
talented people like Neuton; Galilio.

Applied Research: - A type of research that will be conducted to solve

immediate practical problem/s/

Fundamental Research: A type of research that is directed to words finding

information that has a broad base of application and thus adds to the already
existing organized body of scientific knowledge.

Quantitative versus qualitative Research

According to the nature of data being collected and analysed, research can be classified as
quantitative and qualitative.

Quantitative Research

Quantitative research is based on the measurement of quantity or amount. it is applicable to

phenomenon that can be expressed interms of quantity ( number).

Qualitative Research
Qualitative research is concerned with qualitative phenomenon i.e. phenomena relating to or
involving quality or kind in technical term we call it attributes, such as marital status,
occupation, attitude, performance and aspiration. Qualitative research is particularly
important in the behavioral sciences, where the underlying motive is to discover the
underlying motives of human behavior. Through such research we can analyse the various
factors, which motivate people to behave in particular manner. For qualitative research,
guidance of psychologists is needed as it is very useful as it is behavioral.

Quantitative research: - A type of research that describes phenomena in

numbers and measures instead of words.

Qualitative Research: - A type of research that describes phenomena in

words instead of numbers of measures

Conceptual versus Empirical Research

This classification is similar to the applied versus fundamental classification.

Conceptual Research
It is a type of research that is used to develop new concepts or to interpret the existing ones. It
is related to some abstract or theory. Generally used by philosophers and other similar
thinkers to develop new concepts or reinterpret the existing ones. It is related to more
fundamental research.

Empirical Research
It is data based research coming up with conclusions which are capable of being verified by
other researchers. Empirical research relies on experiences or observations alone, without due
regard to system and theory. It is data based research, coming up with conclusions, which are
capable of being verified by observations or experiments. It is also called experimental type
research. Under empirical research, the researcher first provides himself with working
hypothesis or guess as to the probable results. The researcher then works to get enough data
to prove or disprove his hypothesis.

Empirical Research: - A type of research coming up with conclusions which

are capable of being verified by other researchers
.
Conceptual Research: - A type of research that is used to develop new concepts
or to interpreter the existing ones.
Research Methods
What do we mean research method?
Research method refers to the methods that the researchers use in performing research
observations. There are social, political and economic problems all around and each society,
big or small is faced and must find a solution to these problems, if it is to survive.

For solving these problems. Different methods are adopted. Each method has its utility as
well as limitations and as such help and assistance of each method will have to be sought to
find out correct and dependable results.
Despite there are several types of research method classifications, we will discuss some of
them as follows.

Qualitative method

It is one important method for study of social problems. In this method, first of all,
quantitative data is collected and then analysed. Both inductive as well as deductive methods
are applied. In this method, certain individuals are first chosen and their comprehensive study
is made. Observations are made of the events to be observed and the people are interviewed
and an interview basis of some conclusions is drawn.
One serious problem of this method is that here is much of subjectivity in it. Then another
difficulty is that there the research is only individual oriented and as such it becomes difficult
to generalize the findings, because our society is very complex and complicated

Quantitative Method
This method is also known as statistical method. In this method, data is measured and as such
only such units are taken which are worth measuring. Statistics is today needed both for data
collection as well as tabulation of data. It's one? Important utility is that it keeps subjective
element away from the field of social research. If the statistics is correct then the conclusions
are bound to be correct and dependable. But it does not mean that it has its own limitations.
In this method there is practically no consideration for quality of the units which are studied.
In other words these problems which are primarily of qualitative nature cannot be studied.
Field Study Method
It is a method in which researcher himself goes to the field to investigate the problem and to
contact the people and visit the spot so that he has firsthand knowledge of the problem which
he is going to study. The researcher collects the data and also prepares documents based on
the data collected by him.

In this method the researcher either only observes or participates in the work which he has
under taken. This method is useful in so for as such problems are concerned which need first
hand study (knowledge). For instance , in order to know the problem that retard private
investors to invest in different economic activities as to provide incentives so as to attract
investors, may need the researcher to observe and participate in the field work to get firsthand
information from private investors and other concerned parties.

▪Field Study method: it is a type of research method in which the researcher

himself goes for the field to investigate the problem and to contact the people and
visit the spot so that he has firsthand knowledge of the problem which he is going
to study.

▪Experimental method: a type of research method that the researcher manipulates

the independent variable to see its effect on the dependent variable while other
factors remain constant.

▪ Qualitative Method: It is one type of research method that uses quantitative data
for analysis.

▪ Quantitative Method: It is a type of research method that in this method data is

measured and as such only such units are taken which are worth measuring.
Knowledge of the problem which he is going to study.

Despite the fact that field study method enables the researcher to get firsthand information, it
has also its own limitations.

- Due to time and financial constraint, there are very few investigators and researchers who
are prepared to go to the field work. Field work becomes difficult in cases where field is not
conducive for work, such as unhygienic conditions, heavy rainfalls, deserts, jungles etc.
- The difficulties of field worker also increase when there are people who are not willing to
co- operate or where the researcher himself so much identifies with the people that he
becomes biased.

1.8.4. Experimental Method

As the name indicates in this method experiments are carried out under controlled situations.
The first important consideration in this method is that the researcher should be in a position
to control the things over which he is to experiment. In social research, the individuals are the
things to be controlled and it is not possible to control human conduct and behavior. But, at
the same time, experiments are being carried out in social life also and as a result some
conclusions are being derived. The essence of the experimental method is that the researcher
changes (manipulates) one variable (the independent variable) to see its effect on another
variable (the dependent variable) while other factors that might affect the dependent variable
are held constant.

Human beings may vary interms of physical characteristics as height. Weight, interms of
intelligence, interms of demand to wards certain goods etc. All these things can be considered
as variables. Variables can be seen in to two categories

Independent Variable
This is a variable that affects the value or characteristics of another variable (the dependent
variable). It can be manipulated or controlled by the researcher so that its effect can be seen.
Example: suppose a searcher wants to study about low income and high income people's
differences in education attitudes. The researcher will take low income and high income
people and compare their attitude towards education.
Dependent Variable
This is a variable being affected or assumed to be affected by the independent variable. It is a
measure of the effect of the independent variable. The dependent variable in the example
above is the attitude of different income people.

Survey Method
This method is different from experimental method that in survey method there is no need to
have any controlled Situation. It this method, the researcher is expected to go to the field to
conduct a survey and that can be about anything. Thus whereas the scope of experimental
method is very limited, that of the survey method is very wide and extensive. In this method
the researcher himself is responsible for formulating his hypothesis and draw conclusions on
the basis of his surveys.

Interview method
In this method, the researcher personally interviews the parties from whom research
information is to be sought. It is therefore certain that data collected is reliable and
dependable and also valid. It is also possible to test the attitude of the person concerned. It is
possible to have probing questions and find out the mood in which persons is replying the
questions and thereby it becomes easy to test the verbosity of facts and proper conclusions
can be drawn.

As we have discussed above, in interview method the researcher personally interviews the
parties from whom research information is needed.

For example: In order to attract tourists and to fulfill necessary and essential things for
tourism promotion, the concerned party may need to conduct research. So that the researcher
can use interview method to get firsthand information from all concerned parties.
As we have tried to see above interview method is the method that the researcher personally
interviews the parties from whom the research information is needed. Hence, this method
enables the researcher to get reliable, dependable and valid information. But, it does not mean
that there is no limitation in this method. In this method in many cases the researcher may not
be in a position to establish a harmonious understanding relationship (rapport) with the party
to be interviewed. The researcher may not be capable enough to win the confidence of the
party and thus that may not be prepared to give proper and correct information. Similarly it is
also possible that the party might not be prepared to give verbal information but only willing
to send replies to the questions on which reply is sought. This method thus depends on
individual's ability and capability and as such has much of subjectivity.

Interview method: - A type of research method that enables the researcher

to get reliable and valid information
That all aspects of the problem are covered in the questionnaire. Since the method is cheap
and not very expensive, it has become very popular.

Since this method is relatively cheap and not very cumbersome, many government and non-
government organizations use this method to conduct research in order to resolve different
economic or social problems. For example, In order to levy fair and reasonable tax on tax
payers, the concerned party may conduct a research using the questionnaire method in order
to get the information to analyze as to make a decision. But the system suffers from some
defects as well. Firstly, it is just possible that the questionnaire may become ambiguous and
then might convey different meanings, both to the informant as well as the investigator.
Similarly it is just possible that the informant may not take the question as seriously as the
investigator with the result that the former may give halfhearted information or may take the
things lightly as against their taking them seriously. Then is the problem of interpretation of
the data collected through questionnaire.

Case study Method

It is an intensive investigation of an individual or a certain group. Case study method helps

in organizing social data and preserving unitary character of the subject which is studied.
Under case study method, one case study is under taken and effort is made to make a
comprehensive study of the problem in all its entirety, keeping in view unitary character of
the subject. In this method, there will be an in - depth examination of an individual or a
group. Data about the present status, past experiences and environmental factors that
contribute to the behavior of the individual or the group and how these factors relate to one
another will be gathered. The analysis of the factors and their interrelationships help the
researcher to construct a comprehensive and integrated picture of the individual or the group.

For example: The researcher may want to study about the effect of tax imposition on
investment reduction. In this case, the researcher may conduct a case study on his particular
region or environment. Though greatest advantage of the subject is that it helps in
maintaining unitary character of the subject, yet it suffers from certain serious limitations.
Usually it is difficult to extract information from the parties, particularly when the
information called for is of confidential nature or brings lurking tears of some disadvantage at
some distant future. Similarly character, personal interest and attitude of the investigator also
goes a long way in this method.

Questionnaire Method

Under this system, a comprehensive questionnaire is prepared and effort is made to see that
the answer is either in the negative or positive. The investigator tries to ensure that all aspects
of the problem are covered in the questionnaire. Since the method is cheap and not very
expensive, it has become very popular.

Since this method is relatively cheap and not very cumbersome, many government and non-
government organizations use this method to conduct research in order to resolve different
economic or social problems.

For example .In order to levy fair and reasonable tax a tax payers, the concerned party may
conduct research using the questionnaire method in order to get the information to analyse as
to make a decision. But the system suffers from some detects as well. Firstly, it is just
possible that the questionnaire may become ambiguous and then might convey different
meanings, both to the informant as well as the investigator.

Similarly it is just possible that the informant may not take the question as seriously as the
investigator with the result that the former may give halfhearted information or may take the
things lightly as against their taking them seriously. Then is the problem of interpretation of
the data collected through questionnaire

Sample Method

This is very frequently used by the social scientists. By this method the whole area or all
associations or population are not studied, but by a systematic method only a sample is taken
out and studied.

Sample is that part or unit of the population about which information is collected
and provides the basis for the analysis.
Example: Suppose if we want to study the expenditure pattern of "x" region family in an
area, in which about 5000 families live, it will be a costly and time consuming affair. In order
to save both time and money out of 5000 families some families are taken up taking into
consideration the size of the family, different ranges of income, educational qualifications of
members of family, occupation to which the family belongs, the number of earning members
etc. In this way out of 5000 families we can pick up only 500 families. These families are
studied and it is believed that the results derived will be more or less applicable to the
families which have been left out. Obviously this method is less costly and less time
consuming and can also be easily supervised. But the difficulty with this system is that even
if there is little negligence wrong results are likely to be derived, which in turn are made
applicable to the society as a whole.

▪ No single research method is self-sufficing. Each method has its own

limitations and as such all methods should be treated complimentary to each
other and be used in that spirit, if proper result are desired to be achieved.

The Role of Research

As pointed out in our preceding discussion, progress is not achieved without conducting
research. Research inculcates scientific and inductive thing and it promotes the development
of logical habits of thing and organization.

Research as an aid to economic policy has gained added importance. Both for government
and business. Research provides the basis for nearly all government policies in our economic
system.

Example: government budgets rest in part on an analysis of the needs and desires of the
people and on the availability of revenues to meet these needs. The cost of needs has to be
equated to probable revenues and this is a field where research is most needed. Through
research the government and other concerned parties can devise alternative policies and can
as well examine the consequences of each alternatives. Decision - making may not be a part
of research but research certainly facilitates the decisions of the policy maker.
Economic resources are scarce. In contrast, the human desires are unlimited (limitless). As a
result, we cannot satisfy all our wants at any one particular time. Therefore, we have to
decide which wants we should satisfy with the resources available to us. So that in order to
identify the need that should be given priority and the quantity or amount of resource that is
well enough to full fill this need a research. Hence, research is considered necessary with
regard to the allocation of nation's resources.

Research is also necessary with regard to the collection of information on the social and
economic structure of the nation. Such information indicates what is happening in the
economy and what changes are taking place. Thus, in the context of government, research as
a tool of economic policy has three distinct phases of operation.
1. Investigation of economic structure through continued compilation of facts.
2. Diagnosis of events that are taking place and the analysis of the forces underlying
them.
3. The prediction of future developments.

Research is important for social scientists in studying social relationships and in seeking
answers to various social problems. Research has its special significance in solving
various operational and planning problems of different economic sectors. For instance, in
taking business decisions researchers under take: Market research for formulating policies
for purchases, productions sales etc.
 Motivational research underlying market behavior
 Operational research, which deals with problems of cost minimization or profit
maximization or optimization problems.

In addition, the sentence of research can also be understood keeping in view the following
points.
 To analysts and intellectuals research may mean the generalization of new theories
 To philosophers and thinkers research may mean the out let for new ideas and
insights.
 to professional in research methodology research may mean a source of livelihood
  To students who are to write a master's or Ph.D. thesis research may be a way to
attain a higher degree.

Dear student, is there any box that you marked 'No'? If there is please go back to your text
again and read and try to understand about it before you go to the following exercise.

 Self - test Exercise 3

PART I Short Answer
Direction: Answer the following questions.
1. Explain the purpose of research?
2. Define the different types of research?
3. List the different research methods?
4. Describe the limitations of different research methods?
5. State clearly the role of research in formulating economic policies?

Unit Summary
 In this actual world, resources are scarce (limited) while human wants are unlimited.
Hence, in order to narrow the gap between limited natural resource on the one hand
and unlimited human desires on the other hand, research becomes essential so that
prioritize the problem that the society faces and for wisely allocating the scarce
resources to satisfy the unlimited human wants.
 Today every nation of the world is faced with serious socio - economic, and socio-
political problems, which are becoming more and more complex day by day and need
systematic, intelligent and practical solution. Therefore, in order to resolve the
problems that the society faces, conducting systematic and scientific based research is
inevitable. Because research enables us to identify the problems and to foreword
alternative solutions.