RESEARCH METHODOLOGY IN ECONOMICS

CHAPTER 1

Q: What is a research?
Q: What are the aims of a Research?
Q: Distinguish between research methods and research
Methodology?

Conceptually, the term Research is composed of two syllables; which are RE and SEARCH. It can

be seen that RE is a prefix to the word SEARCH. More specifically, RE implies doing something

over and over again or starting from scratch. However, SEARCH implies the examining of a thing

closely/carefully.

Therefore, the term RESEARCH is a process that is undertaken in order to gain more insight about

a new/an existing body of knowledge. Whence, this process must satisfy two conditions; such

processes must follow

i. A framework set of Approaches.

ii. Procedures, tools and techniques that test for the validity and reliability of that body of

knowledge must remain the same.

Furthermore, research is a careful, systematic, ancient study, and investigation in some field of

knowledge (those field of knowledge that are researchable, besides not all field of knowledge are

researchable. Further, a research is characterized by the methods used) that is undertaken to

establish facts or principles. Every research has a structured enquiry that must be observed in order

to utilize the acceptable, scientific methodology (Inductive and Deductive reasoning) to solve
problems and create new ideas for future reference. Literally, research is a man’s quest for

discovery of new truths and either improving the existing truths or debunking the truths/beliefs.

Also, it is the seeking of solutions to problems that sometimes requires a repetitive search until

more reliable explanations are arrived at, most times the earlier search may not be quite exhaustive

or completed. Every Research must be subjected to the scientific methodology if it seeks to find

solutions to problems. This scientific methods consist of systematic observation, classification and

interpretation of data. However, there could be other methods of conducting research in other

disciplines. This method is largely subjected to ‘trial and error’ and thus there could be inconsistent

answers to the problem by other researchers. By and large, researchers ought to understand the

types of data required given the variables of an economic theory, develop an adequate knowledge

on data collection and use a well-defined statistical techniques. In the final analysis, Research is a

process of systematic and in-depth study or search for any particular project or topic or area of

investigation backed up with collection, computation, presentation and interpretation of different

data. Research is all about the discovery of a new thing that further seeks to validate or refute an

existing truth/belief

METHODOLOGY: The term Methodology is referred as the general Approach of research

process that follows a systematic theoretical analysis, tools and techniques which is used to

conduct research, analyze data and draw inferences about a well-defined field of study.

Hence, the term Methodology is not to be regarded as method because it does embody a systematic

theoretical analysis. More specifically, the term method is alterable/manipulative in order to suit

a condition. For instance, the stock valuation of products can be done tentatively using the

following methodology:
 i. LIFO

ii. FIFO

iii. WEIGHTED AVERAGE

However, these approaches is further based on the nature of products which follows a systematic

process for valuation.

Constructively, Research methodology in Economics is a guideline to conducting a research study;

this guide follows a systematic technique, scientific reasoning, set of principles and tools that is

validated and reliable for collecting data, analyzing data and drawing inferences on an economic

theory.

TERMINIOLOGY OF A RESARCH STUDY

Survey: This refers to the method of collecting data in research study. This involves a pre-defined

set of questions to a specific group of individuals/ participants e.g. Lecturers, students, traders, and

so on, with every responses being recorded for future reference.

Case Study: This involves an in-depth analysis of a group of people

Simulation:

Variable:

Parameter:
Hypothesis: Hypothesis are statement that have cause and effects relationship which are further

subjected to test.

THE CHARACTERISTICS OF A RESEARCH

Every Research Methodology must satisfies the specific key components of a RESEARCH

STUDY. Research methodology is an essential/ powerful tool for that structured enquiry that

seeks discovery of new truths. A good research must qualify the following characteristics

i. A research must be controllable: This implies that for a research study to be controllable

the variables/ factors within such model must be sub-summed into two variables as there

could be other existing variables within a model. This model is termed a linear model. For

instance, there are 4 factors that influences demand but for ease study, this has been sub-

summed into two factors only; which is price and quantity i.e. This minimizes the effects

of other variables within a model. Therefore, the law of demand reveals an inverse

relationship between price and quantity demanded on the premise of ceteris paribus.

Symbolically, 𝑞 = 𝑓(1 ⋰ 𝑝). The impact of inflation on economic growth has other

variables such as human capital, infrastructure, physical labor and so on.

ii. A research must be valid and verifiable: Validity reveals the degree of truism of a research

study (statement) or it reveals the credibility of a research study i.e. It reveals the accuracy

of an assessment that has been reliable overtime while the verifiability reveals the

consistency and stability of a research when it is tested by other researchers given the

metrics that guides the research e.g. Indian hemp smokers are liable to become lunatic.
 iii. A research must have an empirical analysis: Every research in economics must be backed

up by statistical data through the process of collecting and analyzing data. For instance, the

growth of Nigeria GDP has attained an increase rated at 3%.

iv. A research must be critical in nature: The research study must be full proof and reliable of

the systemized body of knowledge, free of setbacks, and stand test of time. For instance,

economic laws are always backed up by rational thinking and critical thinking. (Religion

is influenced by culture but social science is influenced by rational thinking).

v. A research must be rigorous and systematic in nature: A research study must follow a

sequential and well defined procedures (in other words the steps guiding a research study

can’t be done haphazardly). Thereby, the distribution of scientific material to conduct a

research study must be well observed and further be replicated by other researchers for

more insights.

OTHER DEFINITIONS OF RESEARCH BY VARIOUS SCHOLARS

FRANCIS RUMMEL: According to him, research is an endeavor/attempt at discovery of

knowledge, development and verification of knowledge. This is an intellectual process that has

been developed over 100 century years ago ever changing in purpose, form and always searching

for truth.

P.M COOK: Research is an honest, exhaustive, intelligent search for facts and their meanings or

implication with reference to given problem.

W.S MONROE: Research is defined as a method of studying problems whose solutions are to be

derived partly or wholly from facts.

JOHN. W. BEST: Research was considered a more formal systematic process of carrying on the

scientific method of analysis. It involves a more systematic structure of investigation, usually

resulting in some sort of formal records and procedures. The goal of a research is to develop

generalizations, principles, theories and concepts that can be used to predict and control future

events.

CLIFFORD WOODY: Research is all about defining and redefining problems, formulating

hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions

and reaching conclusions.

REDMAN AND MORI: According to these scholars, the term research is defined as the systematic

effort to gaining new knowledge. The systematic effort probes into the systematic nature of

research that follow a structured pattern/process to gaining new knowledge or insights or to

confirm or refute existing theories or beliefs.

P.V YOUNG: Research is defined as a systematic 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 explanations which were derived within an appropriate

theoretical frame of reference, develop new scientific tools, concepts and theories could facilitate

reliable study of human behaviors.

OBJECTIVES/AIMS/ PURPOSE OF A RESEARCH

The aim of a research must be well tailored accordingly to the intent of the researchers at the

moment of research study. The aim of a research is otherwise termed objectivity/ PURPOSE of a

research which seeks to find out the truth that is not known or yet to be revealed.
Exploratory research studies / Formative research studies: This seeks to gain familiarity with a

phenomenon or to achieve a new insight on the phenomenon. In other words, this is mostly carried

out in new areas of inquiry and helps to test the potentiality of a new insight about a phenomenon.

Furthermore, it examines the ‘how’ and ‘why’ of a phenomenon. For instance, the issue of new

naira design initiated in the last quarter of 2022 could be evaluated using the exploratory research

study. This has further revealed the ineffective government policies, exploitation in the commodity

market, contestable market and so on.

Descriptive research studies: This seeks to portrait/ portray the characteristics of a particular

individual/group/situation. The main concern of this research seeks to understand what is the most

prevalent to an issue under study. Furthermore, it examines the ‘what’, ‘when’ and ‘where’ of a

phenomenon. For instance, the unemployment rate of a country, the demographic statistics and so

on.

Diagnostic research studies: This seeks to determine the frequency with which something occurs

i.e. the association of a study to related studies

Hypothesis research studies: This seeks to test the hypothesis of a causal relationship between/

among variables. For instance, the impact of advertisement on the sale of products. (This is mostly

used by students).

TYPES OF RESEARCH

The type of research is largely based on the Objectives of study. However, the general

classification of research is split into qualitative and quantitative. There are other types of research

that are based on other scale

Experimental Research: This is a research that is largely carried out under controlled conditions

so as to observe the dynamic behavior within a model/ system. Hence, it is fixed and rigid in nature.

This is primarily concerned about the cost-effect relationship within a system. for instance, the

formation of water; 𝐻2 𝑂

Creative Research: This form of research is quite flexible in nature and has much more relevance

in most fields. It involves the development of new theories, new procedures and new innovation

e.g. the activities of investment banking and management consulting.

Descriptive Research:

Expository Research:

Historical Research: This research is geared towards the past event which further seeks to examine

the present outcome in order to predict the future outcome. E.g. Business cycles- Recession of

1930s could be deployed to evaluate the Recession encountered during the era of covid 19.

Ex-Post Facto Research:

Action Research: This refers to examining actions, assessing their effectiveness in order to bring

about that desired outcome and choosing a course of action based on these results. This form of
research is quite informal. It seeks to find practical solution to an identified problems. e.g. the

health care sector, education sector and so on. Thereby, there is a fundamental means to get

answers as the people involved are largely affected.

Cross-sectional research: This type of research is conducted at one point I time whereby

participants are usually chosen based on shared/common characteristics.

Longitudinal research: This research largely focuses on how certain measurement change over

time, without manipulating any determing variable. This type of research is adopted in trend study,

cohort study, and panel study.

Quantitative Research: This is a research that is based on the measurement of quantity or amount.

It is applicable to phenomena that can be expressed in terms of quantity.

Qualitative research: This is a research that is based on qualitative phenomena involving quality

or kind. Furthermore, it answers questions like “what, when and how”

Mixed Research: This is the combination of Qualitative and Quantitative Research.

 Chapter TWO

RESEARCH PROCESS

 Introduction

 Types of Social Science Research

 The Social Science Research Process

The Research process helps to describe the sequential stages/ series involved when conducting a

social science research.

Types of Social Science research

There are several ways of categorizing social science research. However, there are two main social

science research, which are; Theory-developing social science research and Theory-testing social

science research.

a. Theory-developing social science research:

b. Theory-testing social science research:

The stages of social science research are majorly classified into 6; these are as follow:

i. The formulation and clarification of a research topic

ii. The review of literature.

iii. Decision of research approach and choice of research strategies.

iv. Collecting, processing and analyzing data

v. Drawing of the inference and formulation of laws ad theories

 vi. Writing up.

 Formulation and clarification of a research topic: This is the initial steps of a research study

that involves the definition of a research problem. The problem of formulation is an

important aspect of a research so as to deliver a good research which further deals with the

formulation and analysis of data. A problem is believed to be researchable when an

investigation is carried out through the collection and analysis of data. This problem must

be evaluated through scientific methodology. Whereby, a problem has to be well defined

before it can ever be considered a research study. For instance, the research study on

distributive justice and elimination of inequalities in the society. The issue of inequalities

could largely be examined using the following indicators outlined below: Income

distribution, differential aspect of infrastructures in education, differential access to health

ad wealth, differential access to political power and so on. However, it is important that

such research study must be controlled.

 The Review of Literature: The review of literature is a careful examination of an existing

research as regards the new subject matter. This seeks to examine a research study in a

stated context or to identify the gaps and weakness in prior study so as to justify a new

investigation and further foster a detailed understanding of the research problem.

Under the Literature review, there are 3 things that are highly considered. These are as follow:

Literature search, Evaluation of Literature material and Organization of Literature review

Literature search seeks to make a quick review of published or unpublished material on the

research study.
Evaluation of literature material: This helps to prevent replication/ repetition during research.

Therefore, it aims at the authenticity of the literature search which is largely achieved through the

Byline, the duration observed before publication and so on.

Organization of literature review: The arranging of literature review that has been reviewed based

on the date chronologically.

 Decision of research approach and choice of research strategies

Before, a research study is critically evaluated certain factors must be considered. These are as

follow; the nature of the research study must be well defined, the resources to conduct the research

must be Available, it must be within the researcher’s interest and there must be relevance of the

research within the framework of studies. The major decision of research approach are further

outlined as; (i) Positivist/ scientific approach (ii) Phenomenological approach

The positivist approach deals with the deduction of hypothesis, the formulation of hypothesis in

operational terms, hypothesis testing, examining the specificity of the required outcome and the

modification of the hypothesis. This approach is mostly used by the social scientist during a

research study basically because, it is backed up by data and further expresses the relationship

between variables.

The phenomenological approach deals with the philosophical, theoretical and methodological

knowledge base for enquiry into the experimental

This will further enable the researcher on the choice of research approach that suits research study

e.g. quantitative research, qualitative research, action research, descriptive research, experimental

research and so on.

Furthermore, the choice of research strategies largely depends on the research study and the nature

of collected data.

 Collecting, Processing and Analyzing Data

Data Collection: This refers to the method of collecting and collating of data. There are 2 types of

Data; Qualitative data and Quantitative data.

Quantitative data deals with the numerical data that is evaluated using statistical measurements/

methods. However, Qualitative deals with non-numerical data e.g. gender, marital status, religion,

occupation and so on.

More specifically, there are two well-known sources of data collection for research study; Primary

source and Secondary source.

o The primary sources are formerly referred to as the first hand data. Hence, when evidence

comes from direct source such as original documents, photographs, eye-witness accounts,

it is called primary source which are further classified into formal and informal method.

Formal method: This refers to the structured/ constructed and standardized technique of data

collection that requires the use of questionnaire, surveys, and so on. However, the less formal

method involves, participant observation, direct observation, focused group discussion, case study

and so on.
Informal method: This refers to the unconstructed/ unstructured technique of data collection.

Although, this method is quite flexible and adaptable to the needs of a research yet the data

collected has high potentiality of unreliable and invalid sources. This method is adopted on daily

basis to gather information on a given subject through opinions, feedbacks, interviews, social

media analysis and so on. E.g. Exploratory research.

o Secondary sources: This refers to the use of existing data that has been collected for future

reference as there could be impracticability of data collection when needed the most by

researchers. This process requires a non-observer mediation between the original evidence

and the researcher /investigator as in books, research reviews, newspapers or stories by

non-participants. This is otherwise termed second hand data sources obtained through

parastals, government agencies, and online databases and so on.

Data Processing: This process involves the interpreting and transforming of collected data through

a careful and advanced planning that further entails; data entry/screening, validity checking,

consistency checking and data combination/data analysis.

Analyzing of data: This is a system driven process that further accounts for the collection and

processing of data through the use of software e.g. Strata, E-view, Spss and so on.

In the final analysis, a basic characteristics of a sound data processing system is when the quality

of data is closely monitored by regular researches and the verifications procedures are aimed at

detecting errors. Errors should be avoided in order to avoid inconclusive research study.

Drawing of the inference and formulation of laws and theories: This is an essential part of a

research study after the due observation of the research process in social sciences. Inferences are

conclusions based on the formulation, testing and verification of stated hypothesis, Analyzing of
data etc. that further enables researchers draw the necessary inference and generalization about the

observed phenomenon. A good number of confirmations leads to verification of hypothesis or

inference or generalization which is established as Economic law.

Writing up: A well written research study write up must be clear, concise and informational to the

readers or non-participants. Every research write up must embody the following; the title of the

research topic, an abstract, introduction, methods, results, discussion, conclusion and references.

The write up of a research study requires two types of writing styles which are as follows;

(i) A clear writing style (ii) A simple writing style. More importantly, it is advised that every

researcher adopts/own a writing style because of the following reasons:

i. It offers an authoritative account of your research.

ii. It gives account and reflect on the knowledge obtained during the research.

In final analysis, within the contents of the writing style. A research study writing up must entail

the following;

An abstract/ Executive summary.

Introduction.

Theoretical/ conceptual framework.

Literature review.

Methodology.

Research findings.

Recommendation.
Theoretical/ practical implication of the research.

References/ Appendices.

RESEARCH PROBLEM

 Research Problem: An Overview

 Choice of Research Topic

 Statement of Research Problem

 Symmetry of Potential Outcomes and Practical

Research Problem: An Overview

Every research has a gap that has to be filled up which constitute the problem of the research.

This gap could be a condition that has to be improved in research study, a conflict to be eliminated,

and a major concern to be handled in a research study. Research problem is the main point of focus

of research. Hence, a lot of decision making by the researcher is based on the problem of the

research. In order to further understand the research problem of a body of knowledge, it is

important that careful evaluation is done by looking at the research process, research topic, and

purpose of research and so on.

 Choice of Research Topic

The process of choosing a research topic is quite daunting task that requires a careful observations,

consideration and exploration. Every research topic must entail the scope of study, the area of

interest, and so on. However, there are sources/methods that enables a good research topic choice.

These are outlined as follow: Evaluate the social problems of the research topic, Personal value of

the researcher, State of knowledge, the review of literature, unasserted assertion, Personal

construct of the researcher, Open discussion. More specifically, it is important to evaluate the basic

characteristics that should back up a well-defined research topic and factors that could hinder the

success of a research study.

 Evaluate the social problems of the research topic: Social problems emerges as a result of

social developments and technological changes within an environment. The research topic

should address the current issues/happenings within the (macroeconomic) environment.

 Personal value: According to Singleton Etal (1988), the basic recipe of a research topic is

the interest and commitment of the researcher which further constitutes the personal value

of researchers. Hence, the research topic must resonate with the personal value of the

researcher in order to conduct the research effectively.

 State of knowledge: The research topic should be geared towards continuity in the body of

knowledge with regard to the pre-existing body of knowledge, for instance the outbreak of

corona virus in 2020 which is evaluated by a researcher in the year 2023 should not start

with the origin of the research problem but should add to the frontier of knowledge.

 The review of literature: The review of literature should be done with the intent of avoiding

repetition and replication which will further enable researchers refine a research topic and

identify the potential research gaps in previous research study.

  Unasserted assertion: This examines the validation and rejection of a quantifying statement

for instance, all men are polygamous in nature, men are more intellectual than women

 Personal construct of the researcher:

 Open discussion: This requires that guidance should be sought from the researchers that

conducted the research topic in the time past this will offer a clear and concise insight into

the potential research topic.

The Basic Characteristics of a Research Topic

 Relevance: The research topic must embody the conceptual and theoretical framework of

a given discipline.

 Researchability: This seeks to examine that definable boundary of a research topic e.g.

Accommodation problem in Lagos, which could further be isolated and delimited with

measurable variables. Thereby, the accommodation problem of University students. This

is well defined and can be measured. Hence, on this premise the hypothesis can be

formulated.

 Focus: The focus of a research topic must be captured on the stated hypothesis, objectives,

scope, inference, generalization, conclusion and so on.

 Rigor:

 Vigor: A research topic must deal with the current happenings in order to inspire/motivate

more insights from the researchers and other researchers on the scope and depth of a

research topic.

 Viability: A research must have the prospect of success whenever it is conducted.

NOTE: There are certain factors that hinders the success of a research topics. These factors are

as follow;
Money: Research studies must be well funded

Availability of data: Data sources must be readily available.

Timing of the research: The timing of the research must be duly stated. Therefore, it is important

a research is completed within the reasonable period of time.

Personnel availability

Research capability.
 STRUCTURE OF A THESIS/RECITATION OF A PROJECT TOPIC

The structure of a thesis varies for discipline. However, a typical structure of a thesis is outlined

in sections, dimensions, chapters and so on. In Economics, the structure of a thesis are mostly

outlined and every chapters has its contents.

Chapter One:

 Background to the study: This offers a holistic view of the research study. This involves

the use of the deductive reasoning (Generalization-specification approach/the top-down

approach) e.g. the backache of a man who visited the doctor.

 Statement of the problem/problem statement: This deals with the identification of a

problem and how it impacts the environment at large e.g. the accommodation problem of

Unilag student in Lagos. However, the focus of interest largely encompasses the

accommodation problem in Lagos city which is stemmed down to the accommodation

problem of unilag student in Lagos because of controlled variables which further

examines why aspirants choses the University as preference for first choice of institute(

why do people want to attend unilag), The admission process- the number of aspirant

intakes, The number of hostels, an empirical findings must back up the problem

statement(i.e. back up the problem statement with statistical data) The data collection of

students in time past as regards the allocated rooms, accommodation price and so on.

 Objectives of the study: This refers to the aim of the research study/purpose of the study

which is further classified as broad objective ad specified objectives of the study; The

broad objectives captures the research topic wholly. However, the specific objectives of

the study is mostly narrowed/tailored down towards the researcher’s view or available

variables which are: How admission enrolments impacts accommodation problem in

 unilag, How accommodation crises influences the nearly constant power supply, how

accommodation problem has caused some external problems amongst the students.

 Research Question: Given the objectives of the research study, the research question can

be framed or formulated e.g. Does admission enrolment affects accommodation crises in

unilag?

 Statement of Hypothesis/Research Hypothesis: A hypothesis is a statement that is yet to

be verified which is further classified as Null Hypothesis and Alternative Hypothesis.

Null hypothesis is stated with the intent of acceptance. However, it doesn’t reveal

relationship between variables e.g. Admission enrolment will not significantly impacts

accommodation problem.

Alternative hypothesis is stated with the intent of rejection. However, this predicts the

relationship between variables of the research study e.g. Admission enrolment will

significantly affect accommodation problem.

 Justification and significance of the study: This examines the relevance of a research

study outcome to people. However, the justification of research examines why is a

research study distinctive? Which can be done via 3 approaches; Empirical approach,

Theoretical approach and methodological approach. Hence, this reveals the newly addes

body of knowledge to a research study.

i. Empirical approach: This deals with the conducting of a research study that has been

conducted in other countries but has not been conducted in one’s own country.

ii. Methodological approach: The use of estimators to justify your research study.

 Scope of the study

 Plans of the study/organizations of the study