Chapter One: Introduction

1.0 Aims and Objectives

The aims and objectives of the unit is to introduce the students to the concepts of scientific
research. It deals with the issue of the conceptualization in social science research. It indicates
that concepts are specified in particular pieces of empirical research. The scientific method is
explained along with an overview of the research process.

What you will study in this unit

- to understand the concepts of scientific research
- to define economic research
- to understand types and classification of research
- to understand the relationship of uncertainty to the type of economic research
to understand the motive of conducting research

1.1. Definition of Research

Curiosity or inquisitiveness is a distinctive feature-of human beings like us. We are curious to
know about our institutions, our environment, our planet, other planets, the universe and
ourselves. Questions go on arising in our mind. What are the parameters of sound health of a
person? How do problems of health arise? What are the remedies? What is the shape of the
earth? How do solar and lunar eclipses arise? How is rain formed? Why are places like Addis
Ababa, Simian Mountain cooler than their nearby places'? Is there any life in other planets?
What are stars? Why day and night alternate?
Research commonly refers to a search for new knowledge. Research as conscious and creative
human activity involves discovering and learning new things. The word research is composed
of two words, re and search. The dictionary defines the former as a prefix meaning again,
anew or over again and the latter as a verb meaning to examine/study/investigate/probe
carefully and, closely. Together they form a noun describing a careful and close study and
investigation in some field of knowledge, undertaken to establish facts or principles. The
search for facts may be made through either (a) arbitrary (or unscientific) method or (b)
scientific method
Arbitrary method: Arbitrary method of seeking answers to questions consists of imagination,
opinion, blind belief or impression. For example, it was believed that the shape of the earth was

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flat; a big snake swallows sun or moon causing solar or lunar eclipse. Similarly, we form our
own impressions about various phenomena and issues.

Scientific Method: This is a systematic rational approach to seeking facts. It eliminates the
drawbacks of the arbitrary method. It is objective, precise and arrives at conclusions on the
basis of verifiable evidences.
Research is a process by which a person observes a phenomenon again and again and collects
and analyzes the data and on the basis of data he draws some conclusions.

Observe Collection of data

Person __________________________phenomena______________________ conclusion
Again and again Analysis of data

Specifically, research can mean different things to different people. Here under we will see
different definitions and perceptions of individuals about research.

a) According to Hertz , Research is the application of human intelligence in a systematic

manner to a problem whose solution is not immediately available.
b) Woody on the other hand defined research as an activity comprises of defining and
redefining problems, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data; making deduction and reaching at conclusion to
determine whether they fit the formulated hypothesis.
c) For some Research is a structured inquiry that utilizes acceptable scientific
methodology to solve problems and creates new knowledge that is generally applicable.
d) For others, Research refers to the systematic method consisting of enumerating the
problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and
reaching certain conclusions either in the form of solutions toward the concerned
problem or in certain generalizations for some theoretical formulation.
However the definition given by Klopsteg seems the most comprehensive one. According to
him; '‘Research is original and creative intellectual activity, carried out in the laboratory, the
library or in the field which endeavours to discover new facts and to apprise and interpret
them properly in the light of previous knowledge, which constantly increasing
understanding, it revises previously accepted conclusion, theories and laws, and makes new
application of its findings.

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 1.2. Characteristics of a Research
From the above definitions, it is clear that research is a process of collecting, analyzing and
interpreting information to answer questions. But to qualify as a research, a process must have
certain characteristics as listed below

a) Research is Systematic and Logical: Research is systematic process of investigation of

truth about a subject. In a research process the approach to be followed is Systematic
approach. Why it is called systematic, because it follows certain steps that are logical in
order. These steps are:
• Understanding the nature of problem to be studied and identifying the related area of
knowledge.
• Reviewing literature to understand how others have approached or dealt with the
problem.
• Collecting data in an organized and controlled manner so as to arrive at valid decisions.
• Analyzing data appropriate to the problem.
• Drawing conclusions and making generalizations.
The systematic approach is used to minimize the impact of our biases on our results.

b) Research is Rigorous: This is about the methods and procedures used in the study. One
must be very careful in ensuring that the procedures followed to find answers to questions
are relevant, appropriate and justified. Whenever possible, researchers should use
appropriate methods and procedures. Usage of a true methods and procedures permit
researchers to draw valid inferences about the relationship between variables.

c) Research is Valid and Verifiable/ Replicable: The conclusion drawn should be correct and
verifiable by you and other persons. This concept implies that whatever you conclude on
the basis of your findings is correct and can be verified by you and others.

d) Research is Empirical: This means that any conclusions drawn are based upon hard
evidence gathered from information collected from real life experiences or observations.
Hearsay evidence, court testimonial evidence, emotional evidence, revelatory evidence, etc.
are not empirical.
e) Research is Critical: The process of investigation must pass the test of inquiry, free from
error and foolproof, i.e. one justifies the other. The methods employed and procedures used
should be critically scrutinized. The process of investigation must be foolproof and free
from any drawbacks. The process adopted and the procedures used must be able to
withstand critical scrutiny.

f) Research is controlled: In exploring the causality relation to two variables, the study must
be set in way that minimizes the effects of other factors affecting relationship. i.e.
minimization of external influence. In social science research, however, since controlling is
almost impossible, the effect of the other variable must be quantified rather.
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 g) Research requires an inter-disciplinary approach: Research is not the mere description of
elementary and isolated facts of nature. It must be related to the study of complex
relationships of various facts. It requires an inter- disciplinary approach.

1.3. Classification and Types of Research

Research can be classified to many bases on the scholars focus and criteria. In actual practice,
research is conducted at different levels and for different immediate purposes. The level at
which a person operates in the field depends on the objectives he intends to accomplish. Some
of the bases for classifications are outcomes, purpose, time and expressions or measurements.
Each approach has its own terminologies, methods and techniques as well as limitations.
Generally research can be classified on the basis of the following traits.

Classis of Research Types in each Classis of Research

I. On the Basis of Objectives/ outcome of • Fundamental research and
Research • Applied research.

II. On the Basis of time horizon covered • Longitudinal research:

• Cross sectional research:

III. On the Basis of Precision in Research • Experimental research and

Findings: • Non-experimental research.

IV. On the basis of Findings of Researches: • Explanatory research:

• Descriptive research:
• Predictive Research
• Correlational Research

V. On the basis of the environment in which the • Laboratory research

research is carried out • Field research

VI. On the basis of type of data used • Quantitative research

• Qualitative research
VII. Based on field of study • Physical and
• Social science

There are various bases to classify the research as follows.

I. On the basis of the outcome of the research:

Whether the research tries to solve a particular problem or makes a general contribution to the
knowledge, research can be
a) Fundamental Research:

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Fundamental research is also called academic or basic or pure research. It is usually
conducted to develop principles, theories and models and is used to expand the limits of
knowledge. It also is used to evaluate the existing theories and models. Fundamental research
is organized only for the attainment of knowledge and truth. “Gathering knowledge for
knowledge’s sake is termed ‘pure’ or ‘basic’ research.” It cannot be used for solving pragmatic
(concerned with actual circumstances rather than general theories) problems. In general it
studies the laws of nature, without or regardless of the immediate application of its findings.
Research concerning some natural phenomenon or relating to pure mathematics are examples
of fundamental research.
E.g.,
• The relationship between crime and economic status is an example of pure (academic)
research.
• Darwin’s Theory of Evolution
• Newton’s Law of Motion
• Einstein’s Theory of Relativity

b) Applied research
Also known as action research, development research, empirical research conducted when
decisions must be made about a specific real life problem. An attempt to find solution for the
problems encountered. It is conducted when there is a desire to formulate developmental
strategies and policies; when you need action to combat the existing or possible problems. A
research aimed at finding a solution for an immediate problem. The results of such research
would be used by either individuals or groups of decision-makers or even by policy makers.
While pure research discovers principles and laws, applied research discovers their application
in solving some social, economic or any other problems.
E.g.,
• The improvement of safety in the working place
• The reduction of wastage in the working places is example of applied research.
In favour of applied research, it is held that “science is for life and not life for science”.

Types of Applied researches

Applied research can be classified on the basis of either technique (methods) or purpose
(function):
Research by their technique (or method) can be further classified as experimental, survey and
observation.
a) Experimental: (or controlled experiment): A researcher would at first create two
matched groups as similar as possible to test his/her hypothesis. One group is
considered as the experimental group, while the other would be designated as the
control group. The experimental group is the one on which the tests are conducted. The
role of the control group is very critical since it serves to isolate the experimental
stimulus as the single source of change among the experimental stimulus.

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 b) Survey (Case study): It represents a comprehensive description and explanation of
many complements of a given social system. The researcher seeks to collect and
examine as much data as possible regarding the subject of his study.

c) Observation: the researcher seeks to become a member of the social event or group
under study. He may or may not reveal his research role. By impressing himself in the
actual social events in progress, the researcher will be in a position to obtain a far
greater depth of knowledge.

II. On the basis of the type of data used

On the basis of data used in the research process research can be Quantitative vs. Qualitative:
A. Quantitative research:
Quantitative research is concerned with quantitative phenomenon. It is based on the objective
measurement of quantity or amount. It is applicable for phenomenon that can be expressed in
term of quantity/number. For such research various statistical technique and econometric
methods can be applied in analysis. These include regression, correlation, and time series
analysis.
The objective of quantitative research is to develop and employ mathematical models, theories
and/or hypotheses pertaining to natural phenomena. Hence, the process of measurement is
central to quantitative research because it provides the fundamental connection between
empirical observation and mathematical expression of quantitative relationships.

Quantitative research may involve the use of proxies as stand-ins for other quantities that
cannot be directly measured. Tree-ring width, for example, is considered a reliable proxy of
ambient environmental conditions such as the warmth of growing seasons or amount of
rainfall. When used in this way, the proxy record (tree ring width, say) only reconstructs a
certain amount of the variance of the original record.

This approach can be further sub-classified into inferential, experimental and simulation
approaches to research.

(i) The purpose of inferential approach to research is to form a data base from which to
infer characteristics or relationships of population. This usually means survey
research where a sample of population is studied (questioned or observed) to
determine its characteristics, and it is then inferred that the population has the same
characteristics.
(ii) Experimental approach is characterised by much greater control over the research
environment and in this case some variables are manipulated to observe their effect
on other variables.
(iii) Simulation approach involves the construction of an artificial environment within
which relevant information and data can be generated. This permits an observation of
the dynamic behaviour of a system (or its sub-system) under controlled conditions. The

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 term ‘simulation’ in the context of business and social sciences applications refers to
“the operation of a numerical model that represents the structure of a dynamic process.
Given the values of initial conditions, parameters and exogenous variables, a simulation
is run to represent the behaviour of the process over time.” Simulation approach can
also be useful in building models for understanding future conditions.

B. Qualitative research
Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e.,
phenomena relating to or involving quality or kind. Qualitative research relies on reasons
behind various aspects of behavior. Simply put, it investigates the why and how of decision
making, not just what, where, and when.

Research designed to find out how people feel or what they think about a particular subject or
institution is an example of such research. For instance, when we are interested in investigating
the reasons for human behaviour (i.e., why people think or do certain things), we quite often
talk of ‘Motivation Research’, an important type of qualitative research. This type of research
aims at discovering the underlying motives and desires, using in depth interviews for the
purpose. Other techniques of such research are word association tests, sentence completion
tests, story completion tests and similar other projective techniques. Attitude or opinion
research i.e., research designed to find out how people feel or what they think about a
particular subject or institution is also qualitative research. Qualitative research is especially
important in the behavioural sciences and behavioural economics where the aim is to discover
the underlying motives of human behaviour. Through such research we can analyse the various
factors which motivate people to behave in a particular manner or which make people like or
dislike a particular thing.

III. Based on time horizon

In terms of time dimension, quantitative research may be divided in two groups: Cross
sectional research (a single point of time) and Longitudinal research (multiple points of time).
a) Cross Sectional research: It is a research limited to a single time period. It is study or
investigation that may take several weeks or months or days. Where different respondents
are studied at different points in time. A cross-sectional study is one that produces a
“snapshot” of a population at a particular point in time. It is the simplest and less costly
research approach. Limitation: It cannot capture social process or change over time.

b) Longitudinal research: It is used to describe a verity of studies that are conducted over a
long period of time. It study that can extend over many years. Prospective of longitudinal
methods. Trendy study may examines recorded data to establish patterns of changes that
have already occurred in order to predict what will be likely to occur in the future. This
research examines feature of people or other unites more than one time. It is usually more

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 complex and costly than cross-sectional but it is more powerful especially with respect to
social changes overtime.
Types of Longitudinal Research:
 Time series research: A longitudinal study on a given observation across multiple
periods. E.g: time series data on exports of coffee for years.
 The panel study: The researchers observe exactly the same people, group or organ
across time periods each time suing a snap shot approach. In a panel study the focus is
on individuals (who?) Eg: interviewing the same people in 2016, 2017, 2018 etc. and
observe the change is an example of panel data set.
 A cohort analysis: is similar to the panel study, but rather than observing the exactly
same people, a category of people who share similar life experience in a specified
period is studied. Hence the focus is on group of individuals not on specific individuals
or who?

IV. Based on the purpose of research

The research can be classified as
• Exploratory Research
• Descriptive research
• Causal research
• Analytical research
• Predictive research

1. Exploratory Research
Exploratory Research is an initial research conducted to clarify and define the nature of a
problem-ambiguous problem. It is conducted to gain familiarity with a phenomenon or to
achieve new insights into it. The researcher aims at formulating more precise questions that
future research can answer, and discovering new insights. It may be the first stage in the
sequence of studies. Its result may not be used as conclusive evidence to determine a particular
course of action. It is usually conducted with the assumption that subsequent research will be
required to provide conclusive evidence. It tends to be more open using range of evidence and
discovering new issues.

This type of Research is conducted in to a research problem or issue when there are no earlier
studies to which we can refer for information about the issue or problem. In this type of
research, the major emphasis is on discovering of ideas and insights.

The aim of this type of study is to look for patterns, ideas or hypothesis, rather than testing or
conforming hypothesis. The objective of exploratory research is to gather preliminary
information that will help define problems and suggest hypotheses.

Exploratory research provides guidance for empirical research when a theory is too general. It
is very much helpful in experimental. It is appropriate to consider as initial step in a continuous
research process. In this type of research the focus is gaining insights and familiarity with the
subject area for more rigorous investigation at a later stage. The exploratory research is

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concerned with an area of study in which hypotheses has not yet been formulated. It is
important to note that exploratory research merely leads to insights or hypotheses. The
researcher has no control over the variables or phenomena.

Exploratory research often relies on secondary data research such as reviewing of available
literature and/or data, or qualitative approaches such as informal discussions with consumers,
employees, management or competitors, and more formal approaches through in-depth
interviews, focus groups, projective methods, case studies or pilot studies. Techniques of
exploratory research are as follows:

The results of exploratory research can provide significant insight into a given situation, but are
not usually useful for decision-making by themselves. Exploratory research is not typically
generalizable to the population at large.

For instance, a marketer has heard news reports about a new Internet technology that is helping
competitors but the marketer is not familiar with the technology and needs to do research to
learn more. When gaining insight (i.e., discovery) on an issue is the primary goal, exploratory
research is used. Using the exploratory approach attempts to discover general information
about a topic that is not well understood by the marketer.

2. Descriptive Research
Descriptive research known as statistical research that describes data and characteristics about
the population or phenomenon being studied as it exists at present. The term descriptive
research refers to the type of research question, design, and data analysis that will be applied to
a given topic.

Description emerges following creative exploration, and serves to organize the findings in
order to fit them with explanations, and then test or validate those explanations. Many research
studies call for the description of natural or man-made phenomena such as their form,
structure, activity, and change over time, relation to other phenomena, and so on. It is a type of
research used to identify and obtain information on the characteristics of a particular problem
or issue. Descriptive studies report what has happened of what is happening.

Descriptive research involves gathering data that describe events and studies aimed at
discovering inferences or causal relationships. And then organizes, tabulates, depicts, and
describes the data collection. Descriptive statistics utilize data collection and analysis
techniques that yield reports concerning the measures of central tendency, variation, and
correlation.

Descriptive studies report summary data such as measures of central tendency including the
mean, median, and mode, deviance from the mean, variation, percentage, frequencies, and

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correlation between variables. Survey research commonly includes that type of measurement,
but often goes beyond the descriptive statistics in order to draw inferences.

Descriptive research does not fit neatly into the definition of either quantitative or qualitative
research methodologies, but instead it can utilize elements of both, often within the same study.
Descriptive research can be either quantitative or qualitative. Qualitative research often has the
aim of description and researchers may follow-up with examinations of why the observations
exist and what the implications of the findings are.

3. Causal Research
It is the research that looks whether there is a cause and effect relationship between variables,
causal research must be undertaken. The objective is to determine which variable might be
causing a certain behavior. In order to determine causality, it is important to hold the variable
assumed to cause the change in the other variable(s) constant and then measure the changes in
the other variable(s). This type of research is very complex and the researcher can never be
completely certain that there are no other factors influencing the causal relationship, especially
when dealing with people’s attitudes and motivations.

There are two research methods for exploring the cause and effect relationship between
variables:

Experimentation: It is a research carried out in the laboratory. These are commonly

experimental research. Such researches are common in medical science, agriculture and in
general in natural sciences

Simulation: Such research uses models to represent the real world. Simulation is common in
physical science, economics and mathematics.

4. Analytical research
Analytical research on the other hand, goes beyond simple description of the state of nature.
Analytical research uses facts or information already available, and analyzes them to make a
critical evaluation of the material. Not only describe the characteristics, but also it analyzes and
explains why and how it happened or is happening. When a researcher encounters an issue that
is already known and have a description of it, you may begin to ask “why things are the way
they are?” The information or facts used here can be either Qualitative or Quantitative.

5. Predictive research
Such research goes beyond explaining why and how things happened. It predicts (forecast) the
possible (probability of happening similar situation in other places. It tries to explain about the
probability of happening similar thing in the future.

V. On the Basis of Precision in Research Findings:

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Research is may be further classified as either experimental or non-experimental.

a) Experimental research
An experiment is a situation in which the researcher manipulates one or more independent
variables, controls any other relevant variables, and observes the effects of manipulation on the
dependent variables. It deliberately and systematically introduces changes and then observes
the consequences of those changes. You seek to control all other variables that might influence
the dependent variables so that alternative explanation of the findings can be eliminated. It
involves a study of the effects systematic manipulation of one variable on another variable. In
the field of health, for example, researchers might measure and study the relationship between
dietary intake and measurable physiological effects such as weight loss, controlling for other
key variables such as exercise.

The most common applications of these designs in marketing research and experimental
economics are test markets and purchase labs. As experiment involves control and careful
observation and measurement, this research method provides the most convincing of the effects
that one variable has on another.

b) Non-experimental research
The researcher identifies variables and may look for relationship among them, but does not
manipulate the variables. Major forms of non-experimental research are: Exposit facto
research, Correlation research and Survey research
i. Expost facto: Usually called causal comparative research. The designation expost facts,
from the Latin for “after the fact”. It indicates that the research is conducted after
variation in the variable of interest has been determined in the natural course of action.
The purpose of this research is to investigate cause and effect relationship between
independent and dependent variables. The researcher uses it, however, in situations that
do not permit randomization and manipulation of variables which characteristics of
experimental research. It is similar to an experiment, except the researcher does not
manipulate the independent variables, which has already occurred in the natural courses
of events. Then the researcher compares groups differing on the independent variable to
determine its effects on the dependent variable.

In an expost facto investigation the researcher cannot control the independent variables
by manipulation or by randomization. Changes in the variables have already taken
place. Because of this lack of control, in an expost facts study it is more hazardous to
infer a genuine relationship between variables.

In case of expost facts research, the relationship between two variables may be because
of other third variable spurious. A spurious relationship is one in which two variables

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 really have no effect on each other but are related because some other variables
influence both. Examples salary increase and increase in distilled spirits sales.

ii. Correlation research; It finds relation with variables. It investigates the extent to which
variables are related and the direction of the relationship. It investigates how scores on
one variable or variables rise and fall as score on other variables rise or fall. Correlation
research is useful in a wide variety of studies. The major applications are

o Determining relationships. It tend to answer question is there relationship between

variables? What is the direction? , and strength if any?
o Assessing consistency in a wide variety of cases.
o Prediction. If you find that the two variables are correlated, then you can use one
variable to predict other. The higher the correlation, the more accurate the prediction.

iii. Survey research: It is a research technique in which data are gathered by asking
questions of a group of individual called respondent. This is to describe state of events
with data and other relevant information. It is widely used method of research in social
science. It permits the researcher to summarize the characteristics of different groups or
to measure their attitude or opinions to ward some issue.
VI. Based on the Field of study: Research in physical Vs. social sciences

There are two broad classification of research that follows:

1. Research in physical sciences
2. Research in social sciences

Physical sciences deal with things, which can be put to laboratory tests under guided
conditions. These researches deal with physical phenomena upon which man has complete
control.
Researches in social sciences are based on human behavior, which is influenced by so many
factors, such as physical, social, temperamental, psychological and economic. We dwell for
some time on this category of research in the forthcoming subtopics as the whole handout is
about social sciences research methods.

Social Research
Social research is part of research, which studies human behavior on a part of society. Social
research is to find explanation to unexplained social phenomena, to clarify doubts and correct
the misconceived facts of social life.

A scientific undertaking which by means of logical and systematized techniques aims

to discover new facts or verify and test old facts, analyze their sequences,
interrelationships and causal explanation which were derived within an appropriate
theoretical frame of reference, develop new scientific tools, concepts and theories
which would facilitate reliable and valid study of human behavior and social life and
thereby gain greater control over time. It is study of mankind in his social environment

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 and is concerned with improving his understanding of social orders, groups, institutions
and ethics.

1.4. Motivation of Doing Research

Research is time consuming, tiresome and expensive undertaking. Despite these all difficulties
many people especially in academic institute would like to carry out research at least once in
their life. The possible motives for doing research may be either one or more of the following
among others:

• Desire to get degree with its consequential benefit. The graduate, postgraduate, PhD. and
Post PhD. students are required to carry out research project as a partial fulfillment to obtain
their Degree. Research is therefore, a prerequisite to complete their study.

• Desire to get respect and promotion (to own respect in society). In academic and research
institutions publication is crucial for promotion and academic rank. “Publish or perish” is a
phrase commonly used in experienced and well-established academic institutes. This
implies an individual should carry out a research activity and publish his findings in
scientific or international journal in order to get respect and academic rank. If not the
individual will "perish" meaning no promotion in academic rank and hence no respect is
possible for that individual in the academic environment.

• Desire to face a challenge in solving the unsolved problem. Concern over a particular
problem initiates a researcher. Desire to face the challenges in solving the unresolved
problems, i.e., concern over practical problems initiates’ research;

• Desire to get intellectual joy of doing some creative work. Doing or participation in some
creative activity will give some professional satisfaction to many individuals. Research will
give this opportunity.

• Directive of government. Government sometimes gives directives to its employees to carry

out a particular study and investigation for better decision-making ground. Ideally any
policy before implementation requires detail study and analysis of its impact on different
parts of the society.

• Employment condition. Some employers (organization) set as criteria at least one

publication in international journal to be employed.

• Desire to be of service to society; Many more factors such as curiosity about new things,
desire to understand causal relationship, social thinking …. etc are among the
motivations.

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 Chapter Summary
Science uses theory as orientation. Theory deals with abstraction. Concepts are abstraction of
reality. The scientific researcher performs on the abstract level of concepts and on the
empirical level of variables. Economic research is the systematic process of collecting,
recording and analyzing data to be used in making better economic decisions.

Economic research helps acquire both qualitative and quantitative information, which could be
used as a basis for making decisions. The nature of the problem of the situation will help the
researcher determine whether the research is exploratory, descriptive or causal.

Self-assessment questions
1. What is research?

2. What are characteristics of research?

3. What is the difference between applied and basic research?

4. Using the techniques employed, list and discuss different types of applied research.

5. Describe the different types of research, clearly pointing out the difference between an
experiment and a survey.

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