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CHAPTER 4
QUANTITATIVE RESEARCH

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Recall: Research procedures

Topic
development

Writing literature Literature review,

review report objectives

Data collection Theory and

and analysis theoretical framework

Research design

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 Introduction to quantitative research

 Quantitative data collection

 Primary

 Secondary

 Quantitative data analysis

 Practical examples of quantitative data analysis

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 How much is the average income of household in 2023? How much does it change
comparing to the previous year?

 The impacts of education on economic growth

 Female students have a higher GPA than that of male students

  How to achieve this research objective?

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 Concept
 explaining socio-economic phenomena by collecting data and using statistical and econometric
analysis methods
 What is more specific?
 Application for
 finding answers for quantitative questions
 measuring correlation and impacts among variables
 testing the hypotheses

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 Requirements of quantitative research

◦ Variables are clearly defined and measured
◦ Are able to collect necessary data
◦ Have a theoretical or practical foundation for model specification
◦ Have foundations for hypotheses development

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1. Identify the research model, relationships, and factors

2. Determine variables (for factors)

3. Determine the measurement scale for the variables

4. Identify data sources and data collection methods

5. Develop a collection tool (questionnaire)

6. Determine data analysis methods (statistical tools)

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 Has been collected, processed and published from other studies

 Collected at the low cost, time and money
 little information and little service for research,
 Suitable for quantitative research
 For example: Secondary data
 Statistical indicators from the General Statistics Office, Enterprise Survey, and
Household Living Standards Survey
 Survey of PCI, PAPI, SMEs, VHLSS
 Financial/annual report data of listed firms on the stock market

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 Clearly determine if the necessary data exists as secondary data

◦ Based on research objectives/questions
◦ Based on research design
 Clearly identify where that data is located
◦ Search (internet or look up at archive centers, etc.)
◦ Search by keyword,
◦ Websites to find economic data
 Conduct data collection

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 International sources
 http://research.stlouisfed.org/fred2/
 http://databank.worldbank.org/data/views/variableSelection/selectvariables.aspx?source=world-
development-indicators
 Domestics
 http://www.gso.gov.vn/Default.aspx?tabid=217
 http://lic.neu.edu.vn/
 Statistic year books
 National-wide surveys: Enterprise survey (GSO), PCI (VCCI), SMEs (WB)
 Individual survey: Household survey (GSO), PAPI (UNDP)

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3. Primary quantitative data collection

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 Primary data
 First-hand collection
 very flexible and meeting research requirement
 High cost and time collection

 Developing and testing measure scale

 Primary data for quantitative research: Survey

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3.1 Developing and testing measure scale

 Factors and variables
 Factor represents a more theoretical and comprehensive concept
 A variable is a measurable quantity and representative of a theoretical factor.
 Variable changes by observations
 Determine the scale for variable
 Every variable must be measured and encoded in numbers
 Transform concepts into measurable elements
 Scale for variables
 Find dimension/measure of variables (objective)
 Develop a list of questions/items to use as scales (subjective)

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 Types of scales used in quantitative research

 Nominal scale
 Ordinal scale: measures levels in order but not necessarily at the same
distance
 Interval scale: measures quantities with similar distances without true
zero
 For example: (very bad, bad, average, good, very good),….
 Ratio scale: (ratio scale) starts from 0, is the scale that contains the most
information

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 Measures of variables
 Measure/item reflect the nature of variable (factor)
 Ex: Prestige is measured by management position
 The measurement scale must have high reliability
 Foundations of measurements
◦ Theory (concept) and previous research
◦ Available data of research objects
◦ Qualitative research
◦ Creativity of researchers

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3.2 Survey
 A data collection method, using questionnaires to collect data for research
 Surveys are often used to collect data when:
 Information is scattered across informants
 Data differs between informants
 Data collected from informants can be trusted
 Data collected on a widescale
 Main components of survey
 Sample
 Questionnaire
 Data collection
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Population sample

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 Infeasible to collect data for population: large population, cannot be accessed,

insufficient resources
 Information from population is not better than that from sample
 A well-selected sample represents for the population.
◦ Sample needs to bring characteristics of population
◦ Sample must represent for the population

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 Factors affecting the representativeness of the sample

◦ Sampling methods
◦ Sample size
◦ Respondent rate
◦ Sampling errors
 Observable: by interviewer, respondents, tools, method

 Unobservable: no answer

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Non- Probability
probability sample
sample
Convinence sample

Purposive sample

Snowball sample
Quota sample

Stratification
Systematic

Cluster
Simple

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Probability sample Non-probability sample

Strengthens High representativeness Saving time and costs
Generalization for the population

Weaknesses Costly Low representativeness

Cannot be Generalized for the
population
Applications Descriptive research Exploratory research
Correlation/causality Experiment research

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 Sampling frame
◦ Criteria for selecting elements into the survey sample
 List of potential informants
 Basic characteristics of the informants used for sampling
◦ For example:
 Enterprise: Size, ownership, industry, etc.
 Individual: Gender, age, ethnicity, place of residence,...
 Select district: Population, income, industrialization, urbanization,...

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 Sample size
◦ Each type of research design requires a different sample size
◦ In socioeconomic research, sample size depends on
◦ Size of population
◦ Significant level/reliable interval (95%)
◦ Sampling error (5%)

 See more https://www.surveymonkey.com/mp/sample-size-calculator/

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 It is a data collection instrument in survey

Without data there is no good evidence
Without good evidence, it is impossible to have relevant recommendation
 The ability to design questionnaires cannot be learned from books. There
is no substitute for personal experience
 Questionnaires must make respondents safe when answering

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Questionnaire Identify needed data

development
Identify data collection methods
procedures
Content and parts of questions

Determine format and word use

Arrange order of questions

Determine structure and format of questionnaire

Pilot

Finalize questionnaire
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 Foundation for questionnaire design: Based on research design

◦ Research objectives and questions
◦ Research framework/model (variables to be measured)
◦ Necessary data
◦ Survey objects (number of groups, characteristics...)
◦ Data collection methods (mail, face-to-face interview, online...etc.)

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 Determine content of each question

 Questions need to collect sufficient data for analysis
◦ For example: Labor participation (do you work? How many hours/day, day/week)
 Questions do not necessarily and directly ask about the issues
◦ For example: Do you love your country? Have you ever been corrupt?
 Be answerable and willing to answer
◦ For example, ask about expenses and income in the past month

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 Types of questions
◦ Open-ended question
 Name the expenses you have to pay
◦ Closed questions: provide choices/options
 Two extremes (e.g. Yes, No)
 Multiple options: More than two options
◦ Scaled questions (closed questions in nature)

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 Contents of question
◦ Questions about objective information
 Do you have any children in elementary school?
◦ Behavioral questions
 Do you regularly check your child's lessons?
◦ Attitude/evaluation questions
 Please indicate your level of agreement with the following statements: “
...The class meets my expectation." (with 1 = strongly disagree, 2 = disagree, 3 = neutral,
4 = agree, 5 = strongly agree).

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 Structure of the questionnaire

 Opening/introduction
 Purpose (general), requirements, confidential, contacts
 Main content
 Arrange questions into clusters related to each type of hypothesis or research content
 Easy first, difficult later; Common first, specific later; Simple first, complex later
 Conclusion
 Thanks for your participation

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 Notes
◦ Each question only asks one idea
 Is capital used effectively and economically?
◦ The language is easy to understand – by the respondent's words
 Is the program's logistics good?
 What is your rice yield in tone/hectare?
◦ Everyone understands in the same meaning
 Where are you injured?
◦ The question has a clear goal but no answer direction
 Do you think smoking should be banned?
◦ Answer options must cover all possibilities/situations and distinguishable
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 Pilot to check if
◦ interviewers are easy to ask questions
◦ interviewees are easily to understand and answer the questions
◦ answered data are appropriate to the research objectives
◦ surveyed sample is relevant
 Adjust the questionnaire
◦ Based on notes when testing;
◦ Based on the pilot testing results
◦ Preliminary results of the pilot survey
 Finalize questionnaire

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 Some popular ways to collect data

◦ Online
◦ Distribute questionnaires and collect the responded questionnaire
◦ Direct interview
 Be careful with online survey
◦ Correctly screen survey informants
◦ Reminder the selected informants to complete the survey
 Quality assurance
◦ Online: response time, right respondents, etc.
◦ Offline: participate in surveys, missing values, make a phone call,...)

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4. Quantitative data analysis

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 Quantitative data analysis is a process  Procedures

 Processing and analyzing the collected data  Data preparation and testing
 for quantitative research  Data processing
 Supporting/complement qualitative analysis  Presentation of analytical results

 Usage to
 Answer to quantitative questions
 Measure correlation and impacts among variables
 Test the hypotheses

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 Types of data for quantitative analysis

 Numeric and coded data by using quantitative measure/scale
 Coding
 Non-numeric data need to be coded
 Code preparation (ex: male = 1, female = 0)
 Save the codes for latter use
 Data inputting
 Data entry by codes provided
 Testing inputted data
 Aim at improving accuracy and objectivity of data
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 Data analysis methods

 Exploratory factor analysis (EFA)
 Reliability test
 Validity test
 Descriptive statistics analysis
 Correlation and regression analysis

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 Used when developing new measure/scales (rarely used in economics)

 Testing for reliability of scale
 Cronbach alpha
 Aggregate correlation: 0.6 < Cronbach alpha <0.95
 Cronbach alpha if item deleted < Cronbach Alpha of aggregate variable
 Testing for validity
 Identify items/measure for variables
 KMO > 0.5; Sig.(Bartlett's Test) < 0.05
 factor loading > 0.5

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 Usages for
 Sample description
 Description of variables
 Providing basic understanding about variables/indicators
 Some basic statistic indicators
 Observations, center-value, and variance
 Analysis by time (dynamics)
 Analysis by space (statics)
 Difference analysis

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Variable Obs. Mean Std. Err Min Max

Revenue 155 3935478 6753884 76500 50900000

After-tax profit 155 186882 530052.9 -262575 5785868

State budget contribution 155 127854 291073 0 2962215

ROA 155 0.065 0.094488 -0.0425 0.5962

ROE 155 0.064 0.089586 -0.0863 1.4263

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Table #: Average weekly working hours by gender and region of Vietnamese workers, 2002-2012

Whole Male Female Urban Rural

2012 36,8 37,1 36,3 41,5 34,0
2014 38,0 38,1 38,0 42,8 35,1
2016 39,0 39,0 39,0 43,4 36,0
2018 39,7 39,8 39,7 44,1 36,8
2020 39,7 39,9 39,3 43,4 36,9
2022 39,3 39,4 39,1 42,8 36,8

Source: General Statistic Office of Vietnam (2023) LE QUANG CANH 43

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 Analysis by time (dynamics)

 Show the movement/trend of variables over time
 Calculate change and rate of change over time
 Allows comparison of speed of change over time
 Compare plan and actual implementation
 Identify trends and forecast

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GDP per capita of Vietnam

4500

4000

3500

3000

2500

2000

1500

1000

500

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 GDP structure of Vietnam in 2020, at constant prices.

 What do you know about this data?

9.9 14.0

Nông nghiệp

Công nghiệp
41.6 34.5
Dịch vụ

Thuế trừ trợ cấp

sản phẩm

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 Difference analysis
 Group comparison: similarity and/or differences
 Provide more evidence for analysis and arguments
 Comparison methods
 Comparing variables or groups (comparing specific values, proportions, trends, total
numbers, distributions, relationships between variables, etc.)
 Test differences between groups (t-test or ANOVA)

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 Correlation among variables

 Showing relations among variables or statistic indicators
 Using Pearson correlation matrix or Scatter plot
 Regression analysis (measure impacts of variables)
 Model specification
 Regression
 Interpretation and discussion

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 A variable has relations with other variables

 Social economic variables has relations with other social economic variables
 Example: studying time and scores
Students Studying time Scores
10
1 2.0 7.8 9
8
2 2.5 8.4 7

3 3.0 8.8 6
5
4 4.0 9.2 4
3
5 3.5 9.1
2
6 1.0 6.2 1
0
7 2.0 7.8 0 1 2 3 4 5 6 7

8 4.5 9.2
 Estimated results: KQT = 4 + 2,5*TGH -0,3*TGH2
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MATH READING SCIENCE

Male 6.202*** -21.85*** 11.47***
(0.712) (0.600) (0.577)
Household assets 2.306*** 3.284*** -3.923***
(0.309) (0.275) (0.254)
Mother –Uni and higher -4.877*** 6.667*** (1.382)
(1.824) (1.629) (1.500)
Father –Uni and higher 1.338 -5.062*** 2.799**
(1.512) (1.352) (1.243)
Reading scores 0.271*** 0.534***
(0.011) (0.008)
Science scores 0.787*** 0.631***
(0.009) (0.009)
Math scores 0.217*** 0.533***
(0.009) (0.006)
_cons -53.62*** 89.25*** -26.01***
(3.303) (2.633) (2.660)

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5. Practices and Exercises

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 Secondary data collection

 Collect GDP and GDP per capita of Vietnam
 Collect data on general education students of Vietnam from 2015-2020
 Questionnaire development
 Discussion on sample questionnaire

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 Several statistical software

 Mostly used STATA/SPSS
 Data entry
 Descriptive statistics analysis
 Correlation analysis
 Regression analysis

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