Research Methodology

Formulating a Research Problem

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 Defining Literature Review
A literature review is a text which includes
current knowledge including substantive
findings, as well as theoretical and
methodological contributions to a particular
topic. Literature reviews use secondary sources,
and do not report new or original experimental
work.

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 Aim of Literature Review
The aim of a literature review is to show your
reader that you have read, and have a good grasp
of the main published work concerning a particular
topic or question in your field. This work may be
in any format, including online sources. It may be
a separate assignment, or one of the introductory
sections of a report, dissertation or thesis. In the
latter cases in particular, the review will be guided
by your research objective or by the issue or thesis
you are arguing and will provide the framework
for your further work. 4
 Aim of Literature Review
• to define and limit the problem you are working
on
• to place your study in an historical perspective
• to avoid unnecessary duplication
• to evaluate promising research methods
• to relate your findings to previous knowledge and
suggest further research
.

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 What Literature Review Should Do
• compare and contrast different authors' views
on an issue
• group authors who draw similar conclusions
• criticize aspects of methodology
• note areas in which authors are in disagreement
• highlight exemplary studies
• highlight gaps in research
• show how your study relates to previous studies
and to the literature in general
• conclude by summarizing what the literature says
.
 Functions of Literature Review
• Helps to bring clarity and focus to the research
problem
• Improves methodology
• Broaden the knowledge base in the research area
• Contextualize findings
 Procedure for Reviewing the Literature
• Four steps involved:
1. Search for existing literature in the focused area
of study
2. Review the literature selected
3. Develop a theoretical and conceptual framework
4. Writing up the literature reviewed
 Formulating a Research Problem
• Research Problem
Specific idea for the basis of inquiry and that idea
is researchable. Any question that you want
answered and any assumption that you want to
challenge or investigate can become a research
problem.
 Importance of Formulating a Research
Problem
• Research Problem is:
Identification of a destination before undertaking a
journey
Like foundation of a building
Is like an input to a study

According to Kerlinger: “If one wants to solve the

problem, one must generally know what the problem is.
It can be said that a larger part of the problem lies in
knowing what one is trying to do”
 Sources of a Research Problems
• Four P’s
1. People
2. Problems
3. Programs
4. Phenomena
.a combination of two P’s usually. People provide
study population and other three P’s provide
subject area
.
 Considerations in Selecting a
Research Problem
• Interest
• Magnitude: Manageable and doable
• Measurement of concepts
• Level of expertise
• Availability of data
• Ethical issues
 Phase-I: Deciding What
• Formulating a Research Problem.
• The Formulation of Research Objectives
• Identifying Variables.
• Constructing Hypotheses

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 Steps in the Formulation of a
Research Problem
Identify a broad field of study

Divide the broad field into sub-

areas

Select what is of most interest to

you
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 Steps in the Formulation of a
Research Problem
Raise research questions

Formulate objectives

Assess your objectives

Double check
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 Example

Economic Growth Empirical Income

1:Identify

Select
Divide
Determinants of convergence
economic growth,
theory of economic
growth, income
convergence,
institutions and
economic growth,
trust and economic
growth

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 Example

What is the Asses your

Make sure
Raise questions

Formulate Objectives
evidence of objectives in
income the light of
convergence work, time,
among financial
countries, what resources, and
is evidence on expertise
beta and sigma
convergence

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 Example

Regarding interest
Double
Check
in study,
objectives and
resources
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 The Formulation of Objectives
• Word them clearly and specifically
• There is no place for ambiguity, non-
specificity or incompleteness either in the
wording of objectives or in the ideas they
communicate.

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The Characteristics of Objectives
• Clear + Complete + Specific + Identify the
main variables + Identify the direction of
relationship

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 Example of Objectives
• Study the historical role of financial sector in
stimulating growth process around the globe.
• Analyze the relationship between financial
deepening and economic growth
• Evaluate the impact of financial deepening on
growth related factors like inflation and
employment.
• Articulate policy directions based on the
evaluation.
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 Example of Objectives
• To analyze the relationship between export
diversification and economic growth.
• To empirically evaluate the role of human
capital in export diversification.
• To analyze the non-linear impact of economic
growth on export diversification.

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 Example of Objectives
• While controlling governance, analyzing the
impact of trust on income.
• While controlling trust, analyzing the impact
of governance on income.
• Analyzing the impact of other variables, like
physical capital, human capital, fertility rate
and trade openness on income growth in the
presence of trust and governance.

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 Establishing Operational
Definitions: Concepts
• To find out the number of children living
below the poverty line.
• To analyze the impact of women
empowerment on infant mortality rate
• To analyze the impact of trust on growth.

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 Establishing Operational
Definitions: Study Population
• To investigate the causes of youth
unemployment.
• To analyze the impact of immigrants on
family
• To analyze the causes of child mortality.
Concepts are subjective and hence should be
operationalised in measurable terms.
Techniques about how to operationalise
concepts and knowledge about variables
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 The Definition of a Variable
• An image, perception or concept that is
capable of measurement, hence, capable of
taking on different values, is called a variable .
• According to Kerlinger, ‘A variable is a
property that takes on different values’.
• Black and Champion defines as ‘rational unit
of analysis that can assume any one of a
number of designated set of values’.

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 Is everything measurable?
• Some believe that scientific methods are
incapable of measuring feelings, preferences,
values and sentiments.
• Others believe that most of such things can be
measured though there is no direct
measurement. Since these feelings and
judgments are based on observable behavior in
life.

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 Difference between a Concept
and a Variable
• Some believe that scientific methods are
incapable of measuring feelings, preferences,
values and sentiments.
• Others believe that most of such things can be
measured though there is no direct
measurement. Since these feelings and
judgments are based on observable behavior in
life.

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 Difference between a Concept
and a Variable
Concept (subjective) Variable (objective)
Effectiveness, satisfaction, Gender, age, income,
impact, excellent, high weight, height, religion
achiever, self-esteem, rich,
domestic violence
Subjective impression, no Measurable through the degree
uniformity regarding its of precision varies from scale to
understanding among different scale and from variable to
people, cannot be measured variable

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Difference between a Concept
and a Variable

For
operationalisatio
operationalisatio n of a concept,
Concept
n process of
identifying
indicators

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 Difference between a Concept
and a Variable
• Indicators are a set of criteria reflective of the
concept.
• Choice of indictor vary with researcher

Income, Assets can be

richness
assets house, car etc

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 Difference between a Concept
and a Variable
• Indicators are a set of criteria reflective of the
concept.
• Choice of indictor vary with researcher

Concepts Indicators Variables

Academic Average marks Percentage of marks
achievement obtained in
examination
Effectiveness of a Changes in Crude death rate
health program mortality rate

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 Types of a Variable
• Classification can be based on:
1. The causal relationship
2. The design of the study
3. The unit of measurement

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 Types of a Variable: Causation
• Independent variable
• Dependent variable
• Extraneous variable: not measured in the study
• Intervening variable: which affect the
magnitude of relationship between the
independent and dependent variables

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 Types of a Variable: Causation
• Smoking causes cancer but extraneous
variables are age of the person, extent of
smoking and duration of smoking.
• Mortality affect fertility, but the extent of use
of contraceptives is intervening variable and
level of education, age and religion of
respondents are extraneous variables

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 Intervening Variable
• A variable that explains a relation or provides a
causal link between other variables. Also called
by some authors “mediating variable” or
“intermediary variable.” Example: The statistical
association between income and longevity needs
to be explained because just having money does
not make one live longer. Other variables
intervene between money and long life. People
with high incomes tend to have better medical
care than those with low incomes. Medical care is
an intervening variable. It mediates the relation
between income and longevity. 36
 Intervening Variable: Example
• After conducting a study, Mr. X found that there
is a relationship between level of education and
spending. But how does this relationship exist?
After all, we know that being highly educated
does not directly cause you to spend more money.
To answer this question, Joe looks to see if there
are any intervening variables. Joe finds that
income can explain the relationship between
education and spending. The higher one's
education, the more money one is likely to make.
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 Intervening Variable: Example
• This means that a person will have more income
to spend, which leads to increased spending. In
this example, income is the intervening variable
in the relationship between education and
spending. Because the intervening variable
explains how or why the independent variable
affects the dependent variable, it is also referred
to as the mediating variable.

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 Extraneous Variable
• Extraneous Variables are excluded variables that
influence the relationship between the dependent
and independent variables. These are the variables
which influence the outcome of an experiment,
though they are not the variables that are actually
of interest. These variables are undesirable
because they add error to an experiment.

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Types of a Variable: Study Design
• Active variables
• Attribute variables

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 Types of a Variable: Unit of
Measurement
• Qualitative variables
• Quantitative variables
Or
• Categorical Variables
• Continuous Variables

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 Types of Measurement Scale
Introduced by Stanley Smith Evens. Four scales
of measurement:

• Nominal scale
• Ordinal scale
• Interval scale
• Ratio scale

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 Types of Measurement Scale
 Nominal/Categorical (to name; qualitative variables)
The nominal type differentiates between items or subjects
based only on their names or categories and other qualitative
classifications they belong to. Nominal scales are based on
categories which must be mutually exclusive, exhaustive
and uni-dimensional. No chance of addition, subtraction,
multiplication, or other mathematical operations with the
categories.
Ordinal (to order; qualitative variable)
In ordinal scale the data is organized in some order but does
not specify how much different the categories are from each
other. 43
 Levels of Measurement /Scales of Measurement
 Interval/Ratio (quantitative variable)
Numbers can also be used to express quantities. The amount you
pay for your plane ticket, the number of miles you fly, or the
degree Fahrenheit at your destination, are all quantities. Here you
know that the difference between a ticket price of $100 and $101
is the same as the difference between $99 and $100: a single
dollar. There is a �yardstick�: in this case, money. Therefore the
numbers are:
 all-inclusive (all prices can be expressed with a dollar figure) and
 mutually exclusive (no single price can take two different
numbers) and
 ordered (if you paid $100 and I paid $200 I paid more), but
 there is a constant distance between any two adjacent categories (a
dollar difference is a dollar difference).
Levels of Measurement /Scales of Measurement

Interval/Ratio (quantitative variable)

Something measured on a ratio scale has the same
properties that an interval scale has except, with a
ratio scaling, there is an absolute zero point.
Weight is an example, 0 lbs. is a meaningful
absence of weight.
Ratio level variables, such as ticket price, miles
you fly do have a non-arbitrary 0 point. A free
ticket (costing $0) or a grounded plane (traveling
no distance) would have an absolute 0 score.
Types of Questions and Measurement Scales
Close ended questions are designed to attain pre-
determined responses: (example of nominal
scale)
What is your marital status:
Married
Unmarried
Divorced
Widowed
Gender:
Male
Female
Types of Questions and Measurement Scales
How do you rate the quality of food in cafeteria?
(example of ordinal scale)
Very poor
Poor
Average
Fairly good
Excellent

Current Employment Status: (example of nominal scale)

Employee
Self employed
Not working
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Why Levels of Measurement are Important??

Knowing the level of measurement helps in

deciding the way of interpreting the data from that
variable. When you know that a measure is
nominal then numerical values are just short
codes for the longer names. Secondly, knowing
the level of measurement helps decide the
appropriate statistical analysis for that variable.
Hypothesis Formulation

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 The Definition of a Hypothesis

• According to Kerlinger, ‘A hypothesis is a

conjectural statement of the relationship
between two or more variables’.
• Webster’s dictionary defined it as ‘a
proposition, condition or principle which is
assumed in order to draw out its logical
consequences and by this method to test its
accord with facts which are known or maybe
determined’.
 The Definition of a Hypothesis

• Bailey defines it: ‘a proposition that is stated

in a testable form and that predicts a
particular relationship between two(or more)
variables. In other words if we think that a
relationship exists, we first state it as a
hypothesis and then test the hypothesis in the
field’.
 The Features of a Hypothesis

• It is a tentative proposition.
• Its validity is unknown.
• In most cases, it specifies a relationship
between two or more variables.
 The Functions of a Hypothesis

• Provides a focus to the study.

• Provides specific aspects of a research
problem to investigate.
• Enhances objectivity in a study.
• Enables you to test the theory or may add to
the theory.
 The Characteristics of a Hypothesis

• Hypothesis should be simple, specific and

conceptually clear.
example: ‘Suicide rates vary inversely with
social cohesion’.
• A hypothesis should be capable of
verification.
• A hypothesis should be related to the
existing body of knowledge.
• A hypothesis should be operationalisable.
 Hypothesis

• Hypothesis is known as research hypothesis.

examples:
• “Trust and governance has a positive impact
on income growth and this relationship is
non-linear.”
• ‘Real exchange rate volatility has negative
impact on the TFP growth of Asian countries.’
• Human capital enhances the positive impact
of export diversification on economic growth
 Errors in Testing a Hypothesis

• It is possible to arrive at incorrect

conclusions about a hypothesis because of:
– Faulty study design
– Incorrect sampling procedure
– Incorrect method of data collection
– small sample
 References
• Kumar, R. (2011), Research Methodology: A
Step-by-Step Guide for Beginner, Third Edition,
Sage Publication Ltd.
• Ethridge, D. (2004), Research Methodology in
Applied Economics, 2nd edition, Black Well
Publishing.

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