Transcript Chapter 4

Seminar in Economics
Econ. 470
Chapter 4:
Research Process
Stage One - Stage Two
Stage 1:
The Broad Problem Area
 Examples of broad problem areas that researchers
(economists) could observe:
1- Government expenditures on health are improving medical
equality.
2- The government subsidies of a product are not helping to
reduce the inflation.
3- The introduction of flexible work hours has created more
problems than it has solved in many government units.
4- Reduction in oil prices creates budget deficit in Kuwait.
5- Reducing tariffs among GCC states are not enhancing
bilateral trade among them.
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 Recall the Research process:
1) Broad problem area
2) Problem statement
3) Theoretical Framework
4) Generation of hypotheses
5) Data collection:
6) Data analysis: -------------- if Yes go to 7 ( if No go to back!!!)
7) Report Writing( Interpretation of results)
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Why this Problem
 Job Research
 Interests
 Hot Topic
 Others
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Skim Over Literature Review
 A good literature survey:
– Ensures that important variables are not left out of
the study.
– Helps the development of the theoretical framework
and hypotheses for testing.
– Ensures that the problem statement is precise and
clear.
– Enhances testability and replicability of the findings.
– Reduces the risk of “reinventing the wheel”.
– Confirms that the problem is perceived as relevant
and significant.
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 Conducting the Literature:
– Based on the specific issues of concerns (raised in
the literature) and factors (variables( identified, the
literature review needs to be done on these
variables.
– Make sure that the identified published/unpublished
papers are available (or can have access to them)
on the topic of interest.
– Gathering the relevant ones.
– Be ready to write the literature section after finishing
this step.
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Stage 1:
The Broad Problem Area
 What are YOU curious about?
 What interests YOU?
 Why did YOU decide to advance your study of
economics?
 Inevitably start with a broad topic
 An example:
“The interaction of political systems and economic
prosperity”
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Stage 1:
The Broad Problem Area
“The interaction of political systems and
economic prosperity: your thoughts?”
 Why?
- The Arab Spring
- The collapse of the Soviet Union
- Intervention in Iraq, Afghanistan
 Not yet a research question?
- It is not specific enough.
- What is meant by economic prosperity?
- How can political systems be characterised?
Stage 2:
The Problem Statement
 After reading into the literature, the researcher now can
narrow down the problem from the original broad.
 The question( problem) does not necessarily mean that
something is seriously wrong.
 The problem (question) could indicate an interest in an
issue, where finding the right answers might help to
improve an existing situation.
 Thus, the problem statement is a clear, precise, and
brief statement of the question to be investigated with
the goal of findings an answer or solution.
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 Narrow down the broad topic towards a research
question: don’t go for a Nobel prize!!
 Economic prosperity
GDP, per capita GDP, Growth in GDP, per capita GDP
 Characterisation of political system
Frequency of elections, Frequency of change of
government, Number of political parties, Independence
of the judiciary, Democracy
Stage 2:
The Problem Statement
 Your expected research question must be
conditional and has contributions :
– time,
– sample,
– methodology.
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Developing the Topic:
Making the Topic More Precise
 The interaction of political systems and economic
prosperity
 Political systems – too vague
democracy
 Economic prosperity
per capita GDP growth
Interaction – relationship, correlation, causality?
Note:
 With your real topic, refer to the literature to help. It is a
good idea to follow established practice. There are
usually reasons for it.
 Modified topic: The relationship between democracy
and (per capita) economic growth– can you make your
topic more precise??
Issues Raised By Topic Development
Current topic area: “the relationship between democracy and
(per capita( economic growth”
i) To what extent will the study be empirical (supported by
reference to theory)? (Expected to have empirical content.)
Can it be empirical?
ii) How can the relationship of interest be explored?
a) Take a snap shot of a set of countries. Take a sample of
countries both democratic and non-democratic and compare
growth rates? Static. Cross-sectional.
b) Look at the development of one or two countries over time?
Take a country that has changed between democracy and nondemocracy and examine its growth over time. Dynamic. Time
series.
c) Look at a group of countries together over time? Dynamic.
Panel data.
iv) Sample issues: which countries, when and why?
v) What are the key variables? Can they be measured?
Measurement of democracy?
vi) Other factors: Other things cause growth- What other
things?- Identify conditioning factors.
 Keep an open mind, but have a clear starting point.
 You will certainly have to modify your proposal more than
once.
 You may have to narrow it further.
 You may have to use different variables from the ideal.
The Research Proposal
 Key elements:
– Purpose of the study
– Specific problem to be investigated
– Scope of the study
– Relevance of the study
– Research design:
• Sampling design
• Data collection methods
• Data analysis
– Selected Bibliography
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