Research Methods in Agricultural Economics

Getaneh Assefa (MSc)

Getanehassie@gmail.com
Assosa University

College of Agriculture and Natural

Sciences

Department of Agricultural Economics

 CHAPTER ONE
Introduction to Research
Definition ( Meaning ) of research
o There are many accepted definitions for the term research
o The systematic process of collecting and analyzing information(data) in
order to increase our understanding of the phenomenon about which
we are concerned.
o Research is a process through which we attempt to achieve
systematically and with the support of data
the answer to a question,
the resolution of a problem, or
a greater understanding of a phenomenon.
 Research is ---
 To discover
 Finding out
 Encompasses activities that increase the sum of knowledge (OECD)
 Step by step process that involves collecting and examining
information.
 It is a pursuit of truth with the help of study, observation,
comparison and experiment.
 A search for knowledge through objective and systematic method of
finding solution to a problem.
 Research is ---
 It is the systematic method consisting of enunciating the problem,

formulating hypothesis, collecting facts or data, analyzing the facts

and reaching certain conclusions either in the form of solution(s)

towards the concerned problem or in certain generalizations or

some theoretical formulation.

 Generally, research is a systematic inquiry designed to further

our knowledge and understanding of a subject(problem).

 Research is not ---
o Playing with technology
o Book report
o Programming project
o Doing what others have already done
o Research is not just information gathering
o A student going to the library and reading information
o Research is not rearranging facts
However, each of these can be done as part of research
Motive (Rationale behind ) Conducting Research
o Research is conducted for a number of reasons, which in turn depend
on the objectives of any particular ‘research problem.
o Of course, there are particular reasons for undertaking research at various
levels to discover something new.
o it may be to find out something we do not already know or to enhance our
understanding of phenomena that we already know something about.

o Research is a disciplined way of coming to know something about

our world or ourselves.
o Generally, research is done to settle disputes about the nature
and operation of some aspect of the universe we live in.
 Relevance in Research
o “Relevance” can also be seen as the extent to which a certain study or theory
is significant.
o The relevance in research is

The understanding of how finding or studying one thing affects

another.
 Means that study which you are performing should be useful for
others as well.
o High relevancies mean research which you are performing has great potential to
fill a gap in knowledge, especially if it’s something people currently don’t know
about or understand very well!
 Type of Relevance in Research
The different types of relevance in research are:
1. Academic relevance
o This basically means level up to which investigation performed on a particular
topic has helped you in accomplishing your academic goals.
o Academic relevance is a measure of how much something helped you
progress towards your academic goals.

o E.g. Any student when deciding to study a subject

2. Societal relevance
o It is referred to as the information gathered through investigation
helps in developing and understanding of the society.

 Type of Relevance in Research
3. Practical relevance
 It is basically an extent up to which the findings could be applied in
real-life situations.
 Research that has practical relevance not only adds value but also can
make a recommendation for particular industries or improve
processes in an organization.
4. Scientific relevance
 It is basically an extent up to which you can fill the knowledge gap
thorough research on a specific topic.
 You have to make sure that the research you are doing will fill in a gap
of knowledge for the scientific community.
Importance of Research for Agribusiness managers(Decision Makers
o In the business arena including agribusiness and value chains, for
instance, research tends to be undertaken in order to achieve one or
more of the following objectives.
To develop value chains
To gain a competitive advantage
To test new products and services
To solve a management/organizational problem
To provide information which may help to avoid future business problems
Importance of Research for Agribusiness managers(Decision Makers
o To forecast future sales
o To better understand shifts in consumer attitudes and tastes
o To enhance profitability
o To reduce operational costs; to enable management to prioritize
strategic options for the future, among others.
 Philosophical Behind Research
o A research philosophy is a belief about the way in which data about a
phenomenon should be gathered, analyzed and used.
o Research philosophy is classified as ontology, epistemology and axiology.

A. Ontology
o is based on the nature of reality. It is classified on the basis of
objectivism and subjectivism.
Objectivism portrays the position that social objects persist in
reality external to social actors.
subjectivism is concerned with the social phenomena which are
emerged from the perceptions and consequences of those social
actors concerned with their existence.
 Philosophical Behind Research
B. Epistemology
o Epistemology is understood as the acceptable knowledge of a particular
area of study. It can be divided into two aspects; resources researcher
and, feeling researcher.
o Resource research deals with the data from the perspective of the
natural world.
o The feeling research is concerned with the feelings and attitudes of
the workers towards their managers.
o Epistemology can be also classified as Positivism, Realism and
Interpretivism in the domain of research philosophy.
 Philosophical Behind Research
Positivism
o is based on observable social entities.
o is based on the idea that science is the only way to learn about the truth.
o The research strategy is approached on the basis of data collection and

hypothesis development.

Realism
o relates to scientific enquiry
o The core feature of realism is pertained to disclosing the truth of
reality and the existence of the objects is prevalent independently in
the human mind.
 Philosophical Behind Research
Interpretivism
o is focused on the assessment of the differences between humans as
social actors.
o The issue of difference is emphasized on the difference between
conducting research among people rather than objects such as
medicines and computers.
C. Axiology
o is concerned with judgments, aesthetics, and ethics.
o It involves defining, evaluating and understanding concepts of right and
wrong behavior relating to the research.
 Types of Research
 Different criteria are used to classify research types
(All of these are somewhat arbitrary and artificial, and contextual)
o System #1 Basic vs. Applied
o System #2 Experimental vs. Non-experimental
o System #3 Deductive vs. Inductive Research
o System #4 Analytic vs. Descriptive Research
o System #5 Quantitative research vs. Qualitative research vs. Mixed
research
 Types of Research
Basic vs. Applied Research
o Basic( Pure, Fundamental) Research
Is to determine or establish fundamental facts and relationships
within a discipline or field of study.
Develop theories … (examples in economics?)
Aim is to develop or generate a body of general knowledge for the
understanding of human social behavior by means of a combination
of empirical enquiry and application of theory.
directed towards finding information that has a broad base of
application, thus adds to the already existing organized body of
scientific knowledge
e.g. How did the universe begin?
 Types of Research
o Applied Research
Undertaken specifically for the purpose of obtaining information to
help resolve a particular problem.
Is to solve a current (practical) problems
faced by any group in the work setting, demanding a timely
solution.
E.g. Improve agricultural crop production
Basic Applied
Pure/fundamental research Central purpose

Discovery of new knowledge Solution of an immediate problem

Development of theory
 Types of Research
Experimental vs. Non-experimental
Experimental Research Non-experimental Research

Three fundamental
.Causal-comparative
characteristics
• Descriptive
1. At least 1 active IV

.Correlational
2. Extraneous variable controls

• Historical
3. Observations of the DV in
response to the IV
 Types of Research
Deductive Research vs. Inductive Research
Deductive Research Inductive Research

Developing a theory based upon Collecting the data first as a means

the evidence (literature). of developing theory

Collection of more quantitative

Collection of more qualitative data
data

Seek to explain relationships between

Not generalizing
variables

Exploring and / or testing hypotheses

Researcher part of the process
(perhaps for statistical significance)
 Types of Research
Analytic vs. Descriptive research
Descriptive Research
o The attempt to determine, describe, or identify something
o The intent is often synthesis, which pulls knowledge or information
together.
Analytic(or explanatory)
o The attempt to establish why something occurs or how it came to be.
 Types of Research
Quantitative, qualitative and Mixed
Quantitative research…
Involves information or data in the form of numbers.
Allows us to measure or to quantify things.
E.G survey

Qualitative
o is a type of scientific Research which collects, analyzes and interprets data that
cannot easily be reduced to numbers.
o This type of data relates to the social world and the concepts and
behaviors of people within it.
o E.g. Face-to-face interviews, focus groups and site visits
 Types of Research
Mixed Methodology
integrate qualitative and quantitative methods required
 It is not for the sake of integrating the two methods; but some better
results must be realized.
For example: Results from the quantitative research can be generalized
while those of qualitative may not.
 Types of Research
Conceptual versus Empirical
A. Conceptual research
It is related to some abstract idea(s) or theory.
It is used to develop new concepts or to interpret existing ones.
B. Empirical research
It is data based research, coming up with conclusions, which are capable
of being verified by observation or experiment.
 The Research Process
Research Process
o Consists of several actions or steps necessary to effectively carry out
research and the decide sequencing of these steps.
o refers to different steps involved in a desired sequence in carrying out
research.
o However, this does not mean that these steps are always in a given
sequence.
 The Research Process
o They don’t necessarily follow each other in any specific order and the
researcher has to anticipate, at each step in the research process, the
requirements of the subsequent steps.
o However, it should be remembered that the various steps involved in a
research process are not mutually exclusive, nor are they separate and
distinct.
 The Research Process
However, the following order concerning various steps provides a useful
procedural guideline
1. Formulating the research problem
2. Literature review
3. Developing the hypothesis
4. Preparing the research design
5. Determining sample design
6. Collecting data
7. Analysis of data
8. Hypothesis testing
9. Generalization and interpretation
10. Preparation of the report
 The Research Process
1 Formulating the research problem
 There are two types of research problems via, those, which relate to the
state of nature and those, which relate to relationships.
 It requires understanding the problem thoroughly, and rephrasing it into
meaningful terms from analytical point of view.
 This could be done through discussion with colleagues, consulting
experienced person, reviewing literature.
 The Research Process
2. Literature Review
Meant to gain insight on the topic and gain knowledge on the availability of
data and other materials on the theme of proposed area of research.
o The researcher has to review two types of literature:
(a) conceptual literature concerning the concepts and theories, and,
(b) empirical literature - consisting of studies made earlier which are
similar to the one proposed.
 The Research Process
3. Development of working hypothesis:
A working hypothesis is a tentative assumption made in order to
draw its logical or empirical consequences.
The role of hypothesis is to guide the researcher by delimiting the
area of research and to keep him on the right track.
It also indicates the type of data required and methods of data analysis
to be used.

.
 The Research Process
4. Preparing the research design
It evolves stating the conceptual structure within which research would
be conducted.
i.e. its function is to provide framework the collection of relevant
evidence with minimal expenditure of effort, time and money.
5 Determining sample design
o It is a definite plan determined before any data are actually collected for
obtaining a sample from a given population.
 The Research Process
6. Collecting the data
 There are several ways of collecting data, which differ considerably in
the context of money costs, time and other resources at the disposal of
the researcher.
▫ E.g. observation, interviews, a questionnaire.

7. Analysis of data
o It requires a number of closely related operations such as the establishment of
categories, the application of these categories to raw data through coding,
tabulation, and then drawing statistical inferences.
o The data are condensed into manageable groups and tables for further analysis.
 The Research Process
8. Hypothesis testing
 Hypothesis testing will result in either accepting the hypothesis or in
rejecting it.
 Hypotheses when empirically tested may either be accepted or
rejected.
 A hypothesis must, therefore, be capable of being tested.
 A hypothesis stated in terms of a relationship between the dependent
and independent variables are suitable for econometric treatment.
 The Research Process
9. Generalization and interpretation:
 If hypothesis is tested and upheld several times, it may be possible for
the researcher to arrive at generalization, i.e. to build a theory.
 If a researcher had no hypothesis to start with, he might seek to
explain his findings on the basis of some theory. It is known as
interpretation.
10. Preparation of the report or the thesis
 Finally, the researcher has to prepare the report of what has been done
by him.