ECON 580: RESEARCH METHODS

IN ECONOMICS

LECTURE ONE
Introduction to Research Methods

PROF. OSEI-FOSU, ANTHONY

KOFI (PHD)
Associate Professor
DEPARTMENT OF ECONOMICS
KNUST, KUMASI
Why undertaking a research
Method?
Doing a Research Project in the MSc Programme
• KNUST demands students of MSc Economics submit Thesis in partial
fulfilment of requirements for the award of MSc Economics degree
• The Thesis is the research report in Economics (Research Project).
• It consists of conducting a research activity and writing of a research
report.
• It provides an analysis of research data and presents conclusions
that are drawn from it.
• A Thesis is normally between 50,000 and 60,000 words (60-80
pages).
• Sometimes the university requires researchers to defend their
Thesis.
 What is science?
 The systematic study of the structure and behaviour of the physical
and natural world through observation, experimentation, and the
testing of theories against the evidence obtained.
 Science is the pursuit and application of knowledge and
understanding of the natural and social world following a systematic
methodology based on evidence. Scientific methodology includes the
following: Objective observation: Measurement and data (possibly
although not necessarily using mathematics as a tool).
 Is economics a scientific discipline?
 The answer is a Big Yes
Definition of Economics
 Adam Smith (1776): Economics is an enquiry into the nature
and cause of Wealth of Nations
 J. B. Say (1803): Economics is the science of production,
distribution, and consumption of wealth
 Alfred Marshall (1890): Economics is a study of man in the
ordinary business of life
 Lionel Robbins (1932): Economics is a science which studies
human behaviour as a relationship between ends and scarce
means which have alternative uses
 What is research?
 Walliman (2001) argues that many of the everyday uses of the
term research are not correct in the true meaning of the word
 He highlights way in which the term is used wrongly;
 Just collecting facts or information with no clear purpose
 Reassembling and reordering facts or information without
interpretation
 As a term to get your product or idea noticed and respected
 Concept of Research

 Research comprises "creative work undertaken on a systematic

basis in order to increase the stock of knowledge
 The use of this stock of knowledge to:
Devise new applications.
Solve identified problems of society.
Establish or confirm facts, reaffirm the results of previous work, solve
new or existing problems, support theorems, or develop new theories.
 A research project may also be an expansion on past work in the
field.
To test the validity of instruments, procedures, or experiments, research
may replicate elements of prior projects, or the project as a whole.
Characteristics of Research

 Data are collected systematically

 Data are interpreted systematically
 There is a clear purpose; to find things out
 Two phrases are important in the characteristics;
Systematic
To find out things
(Ghauri and Grønhaug, 2005)
Philosophical Foundation of Research
Philosophy is a theory or attitude that acts as a guiding principle for
behaviour.
“don’t expect anything and you won’t be disappointed, that’s my
philosophy”
• Positivism
• Normativism
• Conventionalism
• Instrumentalism
• Idealism
• Realism
• Pragmatism
 Positivism versus normativism
• Positivism is a philosophical system recognizing only that which can be
scientifically verified or which is capable of logical or mathematical proof.
• A positive statement is a statement of fact.
 It may be right or wrong, but its accuracy can be tested by appealing to the facts.
 Example: ‘Unemployment is rising’, ‘Inflation will be over 6 per cent by next year’, and ‘If the
government cuts taxes, imports will rise’

• Normativism is a philosophical system relating to, or determining norms or

standards.
• A normative statement is a statement of value:
 It is a statement about what ought or ought not to be, about whether something is good or bad,
desirable or undesirable.
 Example: It is right to tax the rich more than the poor’, ‘The government ought to reduce inflation’,
and ‘Old-age pensions ought to be increased’
• They cannot be proved or disproved by a simple appeal to the facts.
Conventionalism versus Instrumentalism
Conventionalism
 It is the philosophical attitude that fundamental principles of a
certain kind are grounded on (explicit or implicit) agreements in
society, rather than on external reality.
Instrumentalism
 It seeks to make traditional logic more useful for developing
scientific and technological knowledge.
 Some schools deny that rules of logic are unchanging truths. They
treat logical forms such as deduction and induction as mere
"tools-of-the-trade" of thinking and problem solving.
Idealism Versus Realism
Idealism
 The attitude of a person who believes that it is possible to live according to
very high standards of behaviour and honesty
 Treatment of subject matter in a work of art in which a mental conception
of beauty or form is stressed, characterized usually by the selection of
particular features of various models and their combination into a whole
according to a standard of perfection.
 Realism
 A theory of writing in which the ordinary, familiar, or mundane aspects of
life are represented in a straightforward or matter-of-fact manner that is
presumed to reflect life as it actually is.
 The doctrine that objects of sense perception has an existence independent
of the act of perception
 Pragmatism
 This philosophy holds that what is important with respect to
descriptive knowledge is how well it works for solving a
problem at hand
Types of Research
 There are two major types of research design:
Qualitative research
Quantitative research.
 Researchers choose qualitative or quantitative methods
according to the nature of the research topic they want to
investigate and the research questions they aim to answer:
Qualitative research
• Understanding of human behavior and the reasons that
govern such behavior.
• Asking a broad question and collecting data in the form of
words, images, video, etc that is analyzed and searching for
themes.
• This type of research aims to investigate a question without
attempting to quantifiably measure variables or look to
potential relationships between variables.
• Qualitative research is often used as a method of exploratory
research as a basis for later quantitative research hypotheses.
Quantitative research
• Systematic empirical investigation of quantitative properties and
phenomena and their relationships.
• Asking a narrow question and collecting numerical data to analyze
utilizing statistical methods.
• The quantitative research designs are experimental, correlational,
and survey (or descriptive).
• Statistics derived from quantitative research can be used to establish
the existence of associative or causal relationships between variables.
• Quantitative research is linked with the philosophical and theoretical
stance of positivism
 Quantitative research Con’t
 Statistics derived from quantitative research can be used to
establish the existence of associative or causal relationships
between variables.
 Quantitative research is linked with the philosophical and
theoretical stance of positivism
The Hallmarks or Building Blocks of Scientific Research
A distinguishing characteristic, trait, or feature
• 1. Purposiveness
“Research should have a definite aim or purpose.”
• 2. Rigor
”A good theoretical base and sound methodological
design give rigor to the research. Rigor indicates
carefulness and degree of exactitude in research.”
- Extremely thorough and careful
• 3. Testability
”Scientific research lend itself to testing logically developed hypothesis
to see whether or not data support the educated conjecture or
hypothesis.”
• 4. Replicability
The results of the test of hypothesis should be supported again and
again when same type of research is conducted in other similar
circumstances.

• 5. Precision and Confidence

Precision refers to the closeness of the findings to reality based on
a sample.
Precision reflects the degree of exactness and accuracy of the results on
the basis of samples. Also known as confidence interval in statistics.
Confidence refers to the probability that our estimation are correct
so that we can confidently claim that 95% of the time our results
will be true and there is only 5% chance of our results being “false”
• 6. Objectivity
The conclusion drawn through the interpretation of the results of data
analysis should be objective.
That is, they should be based on facts of the findings derived from actual data
and not on our own subjective or emotional values.
• 7. Generalizability
It refers to the scope of replicability of the research findings in one
organizational settings to others.
“The wider the range of replicability of the solution generated by the research
the more useful the research is to the user.”
• 8. Parsimony
Simplicity in explaining the phenomenon or problem that occur in
generating the solutions of the problem is preferred as compared to
complex research frame work.
The Research Process
• 1. Define the Problem
Identifying a compelling research question is the first step to a
successful research project. What issue, problem, or topic are you
interested in exploring?
 2. Review the Literature
The purpose of conducting research is to "fill in the gaps" of our
knowledge about a particular field or subject, to identify a new
problem, or to "test" a new solution or recommendation for an
existing issue or phenomenon.
To frame your research project, and to ensure that your research question
has not already been examined, you must conduct a literature review.
• 3. Formulate a Hypothesis or a Problem Statement
Depending on your research question and methodology, you will be required to
formulate a research hypothesis OR a problem statement based on your
research question.
A research hypothesis is an educated prediction that provides an
explanation for an observable (measurable) event or condition.
A problem statement is both a reiteration of the problem that the study will
address and the justification for studying the problem.
 4. Select a Research Design
Deciding what you will research will help to determine how you will design your
research project.
Will it be qualitative or quantitative? What methodology and design will you
choose? What methods - techniques and tools - will you use to collect, analyze,
and interpret your data?
• 5. Carry Out the Research
Now you can finally conduct your research!
It is the step that requires the greatest attention to detail to ensure that
your research design and methods are followed accurately - to generate
good data - and that the research is conducted ethically.
 6. Interpret Your Results
Once your experiment has concluded and/or data have been collected, it is
time to analyze the data using methods determined by your research
methodology and design. Next, you must interpret the results.
It is important that your interpretation is supported by the evidence. Avoid
spurious conclusions of causality or correlation
• 7. Report the Research Findings
The purpose of research is to share knowledge.
Once your research has concluded, it is important to share your results. You
might write an article for publication, prepare a white paper, or present your
research at a conference either as part of a panel discussion or a poster
presentation.
 8. Repeat
Research is an iterative process.
New knowledge leads to more questions, further research, and the
generation of more new knowledge.
So, return to Step 1 and enjoy a new research experience!
 Moral and ethical issues in research
• Research ethics is often much more about institutional and
professional regulations and codes of conduct than it is about the
needs, aspirations, or worldviews of ‘marginalized and vulnerable’
communities (Smith 2005:96).
• Ethics is a set of moral principles that aims to prevent researchers
from harming those they research.
• Researchers undertaking research on sensitive topics need to be
acutely aware of their ethical responsibilities (Dickson-Swift 2005:
21).
Moral and ethical issues in research
 Research should, as far as possible, be based on freely given
informed consent of research subjects who have been provided
with adequate information on what is being done to them, the
limits to their Participation, as well as any potential risks they
may incur by taking part in research (Sin 2005: 279).
 There are many ethical issues to be taken into serious
consideration for research.
Moral and ethical issues in research
• Researchers need to be aware of having the responsibility to secure
the actual permission and interests of all those involved in the
study.
• They should not misuse any of the information discovered, and
there should be a certain moral responsibility maintained towards
the participants.
• There is a duty to protect the rights of people in the study as well as
their privacy and sensitivity.
• The confidentiality of those involved in the observation must be
carried out, keeping their anonymity and privacy secure.
• The responsibility of researchers to be honest and respectful to all
individuals affected by the research
THANK YOU
ECON 680: RESEARCH METHODS
IN ECONOMICS

LECTURE TWO:
GENERATING RESEARCH IDEA
PROF. OSEI-FOSU, ANTHONY KOFI
(PHD)
Associate Professor
DEPARTMENT OF ECONOMICS
KNUST, KUMASI
RESEARCH IDEAS
• Finding a general research area
 Common sources of research ideas
 Personal interest and curiosities
 Casual observations
 Practical problems and questions: solving a particular problem
Theories
 Research reports

 These sources constitute the research gap

 The Research Gap
 Development Gap:
 What is not going on well in an economy that needs understanding and solution.
 Literature gap:
 The missing piece or pieces or insufficient information in the research literature.
 These are areas that have scope for further research.
 Because they are areas unexplored, under-explored, or outdated.
 Time gap
 population or sample (size, type, etc.)
 location
 Methodology (Analysis) gap
 Research variables
 Data gap
 Results gap
How to Generate Development Gap
 It is based on the following issues:
 What knowledge is lacking or unknown?
 What demonstrates such lack of knowledge?
Among stakeholders, either by their actions or inaction
Happenings in the economy or environment
 To derive the unknown knowledge, find out the significance of the
research
What would benefit from your research results?
How would it benefit them?
 DEFINING THE RESEARCH PROBLEM
 Here are several forms in which the research problem can be expressed to indicate the method of
investigation.

1. Question or Questions
 Probably the simplest way to set up a research problem is to ask a question.
 This might be quite abstract in nature, so will require to be broken down into
several sub-questions that can be practically investigated.
 The nice thing about questions is that they demand answers.
 Example:
 Are school exam results a true test of a student’s intelligence?
 Questions can then be used to break the main problem down into questions to the define sub-
33
problems.
 DEFINING THE RESEARCH PROBLEM
 The different things you can do to split up the main question are
to:
 Split it down into different aspects that can be investigated separately, e.g. political,
economic, cultural, technical.
 Explore different personal or group perspectives, e.g. employers, employees.
 Investigate different concepts used, e.g. health, wealth, confidence, sustainability.
 Consider the question at different scales, e.g. the individual, group, organization.

34
 DEFINING THE RESEARCH PROBLEM
 We can consider also an exploratory approach, especially for smaller studies.
 The subject and scope of the exploration can be expressed in a statement of
intent, but must be derived from the research problem, imply a method of
approach and indicate the outcome.
An example of this form of research definition is:
 This study examines the problem of career development of women in the
banking industry in Ghana.
 Note how the problem is narrowly delimited in order to put a boundary
around the scope of the work (only women, only in the banking industry, and
only in Ghana).
3
5
 DEFINING THE RESEARCH PROBLEM
2. Hypotheses

 The research problem can also be expressed in terms of the testing of a

particular hypothesis.
 Hypotheses are nothing unusual; we make them all the time. If something
happens in our everyday life, we tend to suggest a reason for its occurrence
by making rational guesses. These reasonable guesses can be expressed in
the form of statement.
 If, on further examination, a particular hypothesis is found to be supported,
we have got a good chance that we can predict what will happen in the same
situation in the future, or can devise actions to prevent it happening again.
3
6
 Defining The Research Problem
 A good hypothesis is a very useful aid to organizing the research effort, but it
must have certain qualities.
 It must be a statement that can be put to the test.
 It must specifically limit the enquiry to the interaction of certain factors (usually
called variables).
 Suggest the methods appropriate for collecting, analyzing and interpreting the data.
 The resultant confirmation or rejection of the hypothesis through empirical or
experimental testing must give a clear indication of the extent of knowledge gained.
Example from our school exam:
School exam results are a true test of a student’s intelligence
3
7
 Defining The Research Problem

Exercise: Read on the use of Proposition and Argument in

defining a research problem
Walliman, N. (2017). Research methods: The basics. Routledge.

38
Steps In Identifying Research Topic And
Formulating Research Objectives

3
9
Example 1: Suppose you want to conduct a study in the area of Private Investment.
Follow these steps:

STEP 1: STEP 2: Dissect STEP 3: Select

 Determinants of private investment  Determinants of private investment in Ghana
Identify
 The relationship between private investment and
Private Investment
economic growth
 The trend of private investment
 The effects of institutions on private investment
 Relationship between private investment and fiscal
deficit
 Effects of public investment on private investment
STEP 5: Formulate Objectives
STEP 4: Raise Questions
Main objective:
 How does inflation affect private
To find out the determinants of private investment
investment?
Specific objectives:
 What impact does corporate tax has on
To ascertain the effects of inflation on private
the performance of private investment?
investment
 How does Gross Domestic Product
To examine the impact of corporate tax on private
growth rate influence private
investment
investment?
To determine the influence of Gross Domestic
 How does availability of credit affect
Product growth rate on private investment
private investment?
To establish the effects of credit availability on
private investment 4
0
Example 2: Suppose you want to study area of Public Debt. Follow these steps

STEP 2: Dissect
STEP 1:  Size and components of public debt STEP 3: Select
Identify  The causes of high public debt  The effects of public debt on
Public Debt  The process of becoming debt overhang and economic growth
unsustainable
 The effects of public debt on economic
growth
 Community attitudes towards public debt
 The effectiveness of debt sustainability
policy,
 etc. STEP 5: Formulate Objectives
Main objective:
STEP 4: Raise Questions  To investigate the effects of public debt on
 What effect does public debt have economic growth
on GDP growth? Specific objectives:
 How does public debt affect the To ascertain the effect public debt has on
growth of the various sector of the GDP growth
economy? To determine the effect of public debt on the
 What are the effects of public growth of the various sector of the economy
debt on private sector  To find out the effects of public debt on
productivity? private sector productivity 4
1
Example 3: Suppose you want to study fertility and mortality. Follow these steps:

STEP 2: Dissect
STEP 1:  Trends in fertility and mortality STEP 3: Select
Identify  Determinants of fertility behavior Relationship between mortality and fertility
Fertility and  Relationship between fertility and mortality
mortality  Effects of health services on mortality
 Effects of contraceptives on fertility behavior, etc
STEP 5: Formulate Objectives
Main objective:
 To explore the relationship between fertility and
mortality
Specific objectives:
STEP 4: Raise Questions To find out the extent of the decline in fertility in
 What happens to fertility when mortality declines?
relation to the decline in mortality
 What is the time lag between the start of decline in To ascertain the time lag between the decline in
mortality and the start of decline in fertility? mortality and the decline in fertility
 What are the factors that contribute to the decline in To establish the factors that affect the changes in
fertility? etc fertility
To explore the relationship between
socioeconomic- demographic characteristics of the
population and the extent of changes in fertility and
mortality
4
2
Example 4: Suppose you want to study Alcoholism. Follow these
steps
STEP 2: Dissect STEP 3: Select
 Effects of alcoholism on the
STEP 1:  Profile of alcoholism
 family
Identify The causes of alcoholism STEP 6: Make Sure
Alcoholism  The process of becoming an alcoholic Assess these objectives in light of:
 The effects of alcoholism on the family The work involved
 Community attitudes towards alcoholism The time available to you
 The effectiveness of an alcoholism model, The financial resources at your
etc. disposal
Your (and your research
supervisor’s) technical expertise in the
STEP 5: Formulate Objectives area
STEP 4: Raise Questions Main objective: STEP 7: Double Check
 What effects do alcoholism have • To find out the effects of alcoholism on the  That you are really
on marital relations? family interested in the study
 How does it affect the various Specific objectives:  That you agree with the
aspects of children’s lives? To ascertain the effects of alcoholism on marital objectives
 What are the effects on the relations  That you have adequate
family’s finances? To determine the ways in which alcoholism resources
affects the different aspects of children’s lives  That you have the technical
To find out the effects of alcoholism on the expertise to undertake
4 the
financial situation of the family, etc study 3
 Assignment 1
Identify a broad research area in development, dissect (at least
5 areas), Select 1, Raise 4 research questions, formulate the
main objective, and provide 4 specific objectives

Caution: Your broad research area (theme) should not be on

any of the examples in the slides (lecture notes).

4
4
Things to Consider in Choosing a Topic

 Interest and Relevance to society

 Duration
 Topic adequacy
 Resources
 Micro-Politics
Objectives of study

General Objective: Specific Objectives:

captures the concern the breakdown of your general
issue included in the objective into smaller, logically
topic connected parts. Use words
such as;
 To identify;
Character of Objective
 To find out ;
Specific
 To investigate;
Measurable
 To evaluate;
Achievable
 To assess;
Realistic
 To determine
Time bound

46
Hypothesis
Hypothesis
 A speculation or a guess.
 A prediction regarding the possible
outcomes of a study.

 One way of solving a research problem is

by identifying possible solutions or
explanations and then gathering
information to see if they are correct.
 Hypothesis is therefore a tentative
explanations of factual information.

 You then collect information to prove or

disprove a hypothesis
47
Two Types of Hypothesis

RESEARCH HYPOTHESIS

1. Directional NULL HYPOTHESIS

2. Non-directional

48
 Directional
This is one in which the specific direction (e.g. higher, lower, more,
less) which the investigator expects to emerge in a relationship is
stated.

Example
 FDI positively affects economic growth
 Money supply leads to rise in the inflation rate in Ghana
Non Directional
 Example
 There is a relationship between FDI and economic growth
 There is a nexus between Money supply and inflation in
Ghana.
 Null Hypothesis
 A null hypothesis is simply a proposition that is definitive on the
exact relationship between two variables.

 It is usually constructed as the hypothesis to tested by the data.

 It is stated explicitly in the negative perceived result to be

accepted or rejected.

H0 : There is no significant relationship between FDI

and economic growth
• We specify the Level of significant (α).
• Since the conclusion we make is based on the sample data, the chance of
our making one of two errors will always exist.
H0 is true H0 is false

Type I error
Reject H0 Correct decision
Ρ(Type I error) = α
Type II error
Do not Reject H0 Correct decision
Ρ(Type II error) = β
• The null hypothesis is either true or false, and we must decide either to reject
it or not reject it.
• Two correct decisions are possible;
• i) rejecting H0 when it is false and ii) not rejecting H0 when it is true.
• Conversely, two incorrect decisions are possible:
• i) rejecting H0 when is true (a type I error) and the probability of committing it is α and ii)
not rejecting H0 when it is false (a type II error) and the probability of committing it is β.
• The probability α is called the significant level.
 Significance/Relevance of Study
 What contribution will your research results add to knowledge?
 What benefit would reader derive from your results?
Solution to Development problem
Theory or concepts
Knowledge, skill and approach
Methodology
Direction for further research

53
Thank You

54
ECON 580: RESEARCH METHODS
IN ECONOMICS

LECTURE THREE
LITERATURE REVIEW

PROF. OSEI-FOSU, ANTHONY

KOFI (PHD)
Associate Professor
DEPARTMENT OF ECONOMICS
KNUST, KUMASI
Introduction
 According to Sharp, et al. (2002) two major reasons exist for
reviewing the literature.

The preliminary search that helps you to generate and refine your
research ideas, which has already been discussed.
The critical literature review.

• Research assessment criteria usually require you to

demonstrate awareness of the current state of knowledge
in your subject, its limitations, and how your research fits in
this wider context (Gill and Johnson, 2002).
 Introduction con’t
 Creswell (2012) says there are three ways in which literature is
used;
For the preliminary search that helps to generate and refined your
research ideas, topic, and draft proposal.
It provides the context and theoretical framework for your research.
To place your research findings within the wider body of knowledge.
Introduction con’t

 In Jankowicz’s (2005: 161) words;

“There is little point in reinventing the wheel … the work that
you do is not done in a vacuum, but builds on the ideas of
other people who have studied the field before you. This
requires you describe what has been published, and to
marshal the information in a relevant and critical way”.
What review of literature is
 It is an exercise in which the researcher tries to identify, locate,
read and evaluate previous studies, observations, opinions and
comments related to his intended research.
 It affords him the opportunity of knowing what areas have been
covered, what remains to be covered what techniques to employ
in his investigation.
Purposes of the Literature Review
 The central purpose of the literature review is to provide the
researcher and the reader with an understanding of the body of
literature as relates to the current or proposed research.
 The literature review;
Prevents unwarranted or excess duplication of what has already
been done
Helps to identify the frontiers of the field
 Helps to identify how, where, and in what manner the proposed
research might add to the general body of knowledge.
Provides idea and direction for;
How to handle problems encountered
Techniques
Sources of data
Approaches that may not have occurred to the researcher
Helps to develop insight on the design of one’s own study by
showing what approaches were and were not successful in prior
analyses
May reveal conceptual insights into the problem and/or provide
the basis for hypotheses in the researcher’s own study
 The role of the literature review is pivotal in any piece of
research, irrespective of its nature.
 The review is as important in problem-solving and subject-
matter research as it is in disciplinary research.
 A formal literature review may not be required in all
research.
 For example, sometimes problem-solving research proposal
aimed at industry groups may not require a formal literature
review, but rather a brief recap of the current state of
information related to the problem with some references
 In summary the significance of your research and what you find
out will inevitably be judged in relation to other people’s research
and their findings.
 You therefore need both to ‘map and assess the existing
intellectual territory’ (Tranfield, et al., 2003: 208).

You need to establish what research has been published in your chosen
area, and if possible, try to identify any other research that might
currently be in progress.

Consequently, the items you read and write about will enhance your
subject knowledge and help you to clarify your research question(s)
further
Sources of Literature
 Sources of the relevant literature can be classified into
two groups

Primary
Secondary sources:
Sources of Literature Continuation
 Primary sources
 Primary sources are those sources which contain a direct account of an
event or phenomenon given by someone who actually observed the
event or phenomenon.

 All research reports written by the person or persons who conducted the
research are primary sources.

 These include students' research reports, research reports, unpublished

thesis, conference proceedings, working papers, etc.
Sources of Literature Continuation
 Secondary sources
Materials which contain an account of an event or phenomenon by
someone who did not actually witness the event or phenomenon.

The author of a secondary source material tries to collect and synthesize a

pool of primary materials. In the course of doing this, he brings his own
interpretations, viewpoints and prejudices to bear on the primary material.

Examples of secondary source materials include textbooks, research

reports published in journals, etc.
Organization of Literature Review
Literature review involves among others;
Organising your literature into appropriate
sub-themes
Paraphrasing passages in your own words
Quoting verbatim from someone’s write-up
Steps in Conducting Literature Review

 Select a topic
 Locate and read literature
 Establish a specific purpose
 Evaluate and interpret the literature
 Synthesize the literature
 Plan and write the draft
 Have the draft evaluated and revise it
Steps in Conducting Literature Review Con’t
Searching /locating the literature
Identify and list the key words associated with the topic of the study.
Consult the preliminary sources for journal articles and text books
Go to the serial section of a library to locate the references (journal or
textbooks)
Use search engines (www) like google.com, wikipedia.org, and others
Reviewing the literature
Read and make notes from the available references
Usually start with the latest or most recent articles
Go through abstracts first to determine the relatedness of the material to
your field of study.
Note down all cited references and bibliography
Steps in Conducting Literature Review Cont
Summarising the literature
Take brief notes focusing on the problem, purpose, procedure, results,
conclusions, and your evaluation of the material
Note down only the important ideas from your sources
Evaluating key concepts*
The literature you use must be evaluated or scrutinized. This
evaluation/Scrutiny should a test for
Suitability
Reliability
Adequacy
Accuracy
Parts of Literature Review

Theoretical Review
Conceptual Framework
Empirical Review
THEORETICAL REVIEW
Theoretical Review (Framework)
 It consists of concepts and, together with their definitions, and
existing theory that is used for your particular study.
 The theoretical framework must demonstrate an understanding
of theories and concepts, and relationships.
 Theoretical review is based on your topic of study, research
problem you are investigating.
The theoretical framework (review)
• It strengthens the study in the following ways;
It permits the reader to evaluate the theoretical
assumptions.
It connects the researcher to existing knowledge.
It permits you to intellectually transition from simple
describing a phenomenon you have observe to generalizing
about various aspects of that phenomenon.
It helps you to identify the limits to those generalization
• In summary theoretical review helps to explain the meaning,
nature, and challenges associated with a phenomenon.
Typical Cases

CORPORATE SOCIAL RESPONSIBILITY AND

SUSTAINABILITY IN THE MINING SECTOR: A CASE
STUDY OF NEWMONT GHANA GOLD LTD, AHAFO
MINES
2.1 Theoretical Review
2.1.1 Concept of Corporate Social Responsibility (CSR)
2.1.2 Evolution of Corporate Social Responsibility
2.1.3 Types of CSR Initiatives
2.1.4 Rationale behind Strategic CSR
2.1.4.1 Views for CSR
2.1.4.2 Views against CSR
2.1.5 Sustainability
2.1.5.1 Concept of Sustainability
2.1.5.2 Sustainability Factors
2.1.5.3 Stages Sustainability
2.1.5.4 How to ensure the Sustainability of Development
Projects
 ISSUES AND CHALLENGES OF EXPORT
DIVERSIFICATION IN GHANA: FIRM LEVEL ANALYSIS
2.1 Introduction
2.2 Trade Theories and Hypothesis
2.2.1 The Classical (Traditional) Trade Theory
2.2.2 Portfolio Theory: Export Diversification under
Uncertainty
2.2.3 Presbisch-Singer Hypothesis
2.2.4 Export- Led Growth Hypothesis
2.2.5 The Diversification- Led Growth Hypothesis
2.3 Conceptual Framework of Nexus between Export
Diversification and Growth
2.4 A Review of Challenges of Export Diversification
THREE ESSAYS ON ECONOMIC IMPACT ASSESSMENT
OF THE USE OF THE HEAVILY INDEBTED POOR
COUNTRIES (HIPC) INITIATIVE FOR POVERTY
REDUCTION IN GHANA
2.1 Theoretical Review
2.1.1 Poverty
2.1.1.1 Concept of Poverty
2.1.1.2 Types of Poverty
2.1.1.3 Causes of Poverty
2.1.1.4 Measurement of Poverty
2.1.2 Nexus Between Growth and Poverty
2.1.3 Poverty and Social Welfare
2.1.4 The Heavily Indebted Poor Countries (HIPC) Initiative
2.1.4.1 Overview of the HIPC Initiative
2.1.4.2 Sources of HIPC Funds
2.1.4.3 HIPC Initiative and Poverty Reduction in Ghana
2.1.4.4 Why Ghana Opted for the HIPC Initiative
2.1.4.5 Intended Objectives of HIPC funds in Ghana
2.1.5 Poverty Reduction Strategies Adopted in Ghana
2.1.5.1 Economic Recovery Programme and Structural Adjustment Programme
2.1.5.2 Development Policy Frameworks in the Mid 1990s (Ghana’s Vision 2020)
2.1.5.3 Interim Poverty Reduction Strategy 2000-2002
2.1.5.4 The Ghana Poverty Reduction Strategy
Conceptual Framework
Three Steps to Framework
 Theoretical: Structure of concepts that exists (tested) and is a
ready-made map for a study
 Conceptual: Consists of concepts pulled together as a map for a
study
 Operational: The conceptual framework when made operational
becomes one’s operational framework
How to use Frameworks in combination for
your research work

Operational
framework
Conceptual
framework

Theoretical
framework
Formulating the Framework of your research project
‘An analysis of what motivates staff behaviour at workplace: the
Case of KNUST Staff’.
To formulate frameworks starting with Theoretical Framework
and then move on to conceptual framework.
Example of theoretical framework
 Theoretical framework: e.g. Maslow’s Theory of Needs and
Motivation.
There are needs in a person’s life to be met.
They are psychological needs, safety needs, love/belonging
needs, esteem needs and self-actualization.
These needs exist/met in a hierarchical order.
It is generalized for all persons.
Maslow’s pyramid of needs
 Developing conceptual framework

This conceptual Framework explains how people will be motivated to improve

their status using the Maslow’s Theory
A Theoretical Framework of the Todaro Model of Migration

 Starting from the assumption that migration is primarily an economic

phenomenon.
 Individual migrant can be a quite rational decision maker despite the
existence of urban unemployment.
 The Todaro model postulates that migration proceeds in response to
urban-rural differences in expected income rather than actual earnings.
 The fundamental premise is that migrants consider the various labor
market opportunities available to them in the rural and urban sectors
and choose the one that maximizes their expected gains from
migration.
 A theoretical and conceptual frameworks showing how the varying
factors affecting the migration decision interact are demonstrated as
following
 Todaro Migration Model
n
V (0)  0
[ p (t )Yu (t )  Yr (t )]e  rt dt  C (0)
where;
V(0) = Discounted present value of the expected net urban-rural income
stream over the migrant’s time horizon
Yu(t) = Average real income of individuals employed in the urban economy
Yr(t) = Average real income of individuals employed in the rural economy
C(0) = Cost of migration
p(t) = Probability that a migrant will have secured urban job at the
average income level in period t
n = the number of time periods in the migrant’s planning horizon
r = the discount rate reflecting the migrant’s degree of time preference
The decision to migrate or not depends on whether V(0) is positive
or negative
Conceptual Framework for Analyzing Todaro’s Rural-
Urban Migration Decision
 Formulating Operational Framework
 Your framework becomes operational when you have
implemented your conceptual framework and the results
documented.

 NOTE
The use of these frameworks is optional and dependant on the
Individual’s own interest.
EMPIRICAL REVIEW
Analyzing Empirical Literature
Analyzing Empirical Literature
 A literature review is never just a list of studies—it always offers
an argument about a body of research
 Analysis occurs on two levels:
Individual sources
Body of research
Four Analysis Tasks of the Literature Review

TASKS OF
LITERATURE
REVIEW

SUMMARIZE SYNTHESIZE CRITIQUE COMPARE

Summary and Synthesis
In your own words, summarize and/or synthesize the key
findings relevant to your study.
 What do we know about the immediate area?
 What are the key arguments, key characteristics, key concepts or key
figures?
 What are the existing debates/theories?
 What common methodologies are used?
 Sample Language for Summary and Synthesis
 Osei-Fosu (2013) has demonstrated…
 Early work by Jamal, Osei-Fosu and Yusif (2015) was concerned
with…
 Osei-Fosu and Oteng-Abayie (2009) compared methods for
handling…
 Additional work by Osei-Fosu et. al; Yusif; and Oteng-Abayie et.
al deals with…
Example: Summary and Synthesis
 Extensive studies have been conducted on microfinance, but
with emphasis on their impact (Johnson & Rogaly, 2018; Josily,
2017; Khan & Rahaman, 2017; Khandker, 2015; Afrane, 2014;
Aguilar, 2013; Kabeer, 2013; Littlefield, et al., 2013; Morduch &
Haley, 2011).
 Others have also concentrated on the problems and challenges
of microfinance institutions (Egyir, 2018; Mayoux, 2017; Anane,
2014; Milford, 2011; Sulaiman, 2010).
Example: Summary and Synthesis
 Furthermore, closely related studies have been on the reasons
for establishing microfinance institutions (Drake & Rhyne, 2017;
Armendáriz de Aghion, & Morduch, 2015; Asian Development
Bank (ADB), 2015; Helms, 2014, 2013; Hudon, 2013; Seibel,
2013).
 However, reasons for their proliferation have seen few studies.
For example, according to Bank of Ghana (2014), many
microfinance institutions have been in existence even without
licenses, which could partly explain their proliferation.
 Other studies attribute the proliferation of microfinance
institutions to focus on poverty reduction (Balkenhol, 2017;
Bateman, 2016; Pollinger, 2015).
Comparison and Critique (Literature Gap)
Evaluates the strength and weaknesses of the work:
 How do the different studies relate?
 What is new, different, or controversial?

 What views need further testing?

 What evidence is lacking, inconclusive, contradicting, or too
limited?
 What research designs or methods seem unsatisfactory?
Sample Language for Comparison and Critique

 In this ambitious but flawed study (Jones and Wang, 2021)

 These general results, reflecting the stochastic nature of the flow
of goods, are similar to those reported by Rosenblatt and Roll
(2020)
Example: Comparison and Critique
 The critical response to the poetry of Phillis Wheatley often
registers disappointment or surprise. Some critics have
complained that the verse of this African American slave is
insecure (Collins 2017: 78), imitative (Richmond 2017, 54-66),
and incapacitated (Burke 2016, 33), at worst, the product of a
“White mind” (Jameson 1974, 414-15). Others, in contrast, have
applauded Wheatley’s critique of Anglo-American
discourse(Kendrick 1993,222-23), her revision of literary
models…
Evaluative Adjectives
 Unusual  Complex
 Small  Competent
 Simple  Important
 Exploratory  Innovative
 Limited  Impressive
 Restricted  Useful
 Flawed  Careful
 Summary of Empirical Literature
Author(s) Title Methodology Conclusion(s)
Osei-Fosu, A. K (2008) Impact of HIPC Initiative Household survey with +(ve) impact on poverty
Microcredit on Poverty FGT Poverty Measure reduction;
Reduction: Panacea or The credits were not
Mirage? paid back so it could not
continue

Asomaning, S. (2017) Deepening financial Pooled OLS + (ve) on banking sector

sector
Nkegbe, K. and Ustarz, L. Banks performance: Fixed and random effect +ve (market share)
(2015) trends and determinants models -ve (overhead cost)

Tuffour, O. & Boateng, A. Profitability of listed Panel regression +ve (Capital adequacy,
(2018) Ghana banks technique(Pooled OLS) interest rate, Bank total
determined by the asset)
stylized facts. -ve (Bank liquidity)
 Analyzing: Putting It All Together
Once you have summarized, synthesized, compared, and critiqued
your chosen material, you may consider whether these studies
 Demonstrate the topic’s chronological development.
 Show different approaches to the problem.
 Show an ongoing debate.
 Center on a “seminal” study or studies.
 Demonstrate a “paradigm shift.”
Analyzing: Putting It All Together

 What do researchers KNOW about this field?

 What do researchers NOT KNOW?
 Why should we (further) study this topic?
 What will my study contribute?
Assignment 2: Read Twenty (20) article papers on the chosen research
problem and summaries them in a table as below
Author(s) Title Methodology Conclusion(s)
THANK YOU
ECON 580: RESEARCH METHODS
IN ECONOMICS

LECTURE FOUR
CITATION AND REFERENCING
FORMAT

PROF. OSEI-FOSU, ANTHONY

KOFI (PHD)
Associate Professor
DEPARTMENT OF ECONOMICS
KNUST, KUMASI
 Introduction
 The Citation/Referencing is obligatory in the writing of theses.
 Their main essence is to acknowledge authors of materials
consulted.
 In writing theses, references are made in two main places.

 These are:
 In-text (In the text or in the thesis)
 At the end of the thesis
Formats Used for Referencing/Citation
 These include:
 The American Psychology Association (APA) –This uses
Reference List
 Harvard - This uses reference list
 Others include:
 Modern Language Association (MLA) This uses Works
Cited
 Chicago/Turabian – This uses Bibliography
 Number of Authors
 One Author
 Osei-Fosu, A. K. (2008). “Heavily Indebted Poor Countries (HIPC) Initiative Fund Micro-Credit for Poverty Reduction in Ghana:
Panacea or a Mirage?” Journal of Science and Technology (JUST), Vol. 28 No. 3: 94-102.
 Osei-Fosu, A. K. (2011). “Evaluating the Impact of the Capitation Grant and the School Feeding Programme on Enrolment,
Attendance and Retention in Schools: the case of Weweso Circuit”, Journal of Science and Technology (JUST), Vol. 31 No. 3: 55-
64.
 Two Authors
 Osei-Fosu, A. K. and Boachie, M. K. (2013). “Determinants of People’s Participation in Microfinance Services in Ghana: Evidence
from Kwabre East District”, International Journal of Innovative Research and Studies, Vol (2)8: 364-380.
 Osei-Fosu, A. K. and Osei-Fosu, A. K. (2013). “Empirical Investigation of the Nexus between Foreign Direct Investment and
Economic Growth in Sub-Saharan Africa”, ADRRI Journal of Social Sciences, Vol. (3)3: 1-20
 More than Two Authors
 Osei-Fosu, A. K., Osei, B. and Osei Mensah, I. (2014). “The Effect of Interest Rate on Deposit on Household Consumption in
Ghana: ARDL Cointegration Analysis”, Researchjournali’s Journal of Economics Vol. (2) 8: 1-18.
 Osei-Fosu, A. K., Baba, I. and Ofori-Boateng, K. (2015). “Real Exchange Rate Volatility and Foreign Direct Investment Inflows:
The Ghanaian Experience”, International Journal of Empirical Finance, Vol. 4, No. 6: 336-344.
 Marfo Boaheng, J., Amporfu, E., Ansong, D. and Osei-Fosu, A. K. (2019). “Determinants of Paying National Health Insurance
Premium with Mobile Phone in Ghana: A Cross-Sectional Prospective Study”, International Journal for Equity in Health, Vol.18
(50): 1-9.
 Kojo Ayesu, E., Sakyi, D., Arthur, E. and Osei-Fosu, A. K. (2022). The impact of trade on African welfare: Does seaport efficiency
channel matter? Research in Globalization, Vol. 5; 1-14
 Amanor, K., Oteng-Abayie, E.F., Osei-Fosu, A.K. and Boakye F. P. (2023). A Decomposition Analysis of Microcredit Welfare Gaps
in Ghana. A Gender Analysis, Journal of Social Sciences and Humanities, Elsevier, Open 7; 1-10
112
In-Text Citing
Citing at the end of text (One Author)
 Paraphrasing: Art historian Laurinda Dixon argues that the home
actually imprisoned most women. She adds that this prison was
made attractive by three things: the prescriptions of doctors of the
day against idleness, the praise given diligent housewives, and the
romantic ideal based on love and respect (Dixon, 2017).
 Quoting: Art historian Laurinda Dixon writes that “for the
majority of women, however, home was a prison, though a prison
made bearable by love and approval” (Dixon, 2017: 136 ).
 In-Text Citing
Citing at the beginning of text (One Arthur)

 Paraphrasing: Dixon (2017) argues that the home actually

imprisoned most women. She adds that this prison was made
attractive by three things: the prescriptions of doctors of the day
against idleness, the praise given diligent housewives, and the
romantic ideal based on love and respect.

 Quoting: Dixon (2017: 136 ) writes that “for the majority of

women, however, home was a prison, though a prison made
bearable by love and approval”.
 In-Text Citing
 Two Authors: Citing at the end of text
 An alternative to the neoclassical growth models, endogenous growth
models take into account intermediate goods, social, institutional and
government policies, and other factors as well as more traditional inputs
(Hall and Jones, 2016).

 Two Authors: Citing at the beginning of text

 According to Hall and Jones (2016), an alternative to the neoclassical
growth models, endogenous growth models take into account
intermediate goods, social, institutional and government policies, and
other factors as well as more traditional inputs.
In-Text Citing
 More than two Authors: Citing at the end of text
 Even though neoclassical growth models are the leading theoretical
models in development economics, the archetype model used in
estimating the effect of FDI on growth is the model put forward by
(Harrod et al., 2016).

 More than two Authors: Citing at the beginning of text

 Zhang et al. (2018) established that evidence of FDI –led growth
hypothesis is mixed and the impact of FDI on economic growth depends
on the host country’s specific characteristics such as trade, human
capital, etc., however positive causality runs from GDP to FDI in Brazil in
the short run and Columbia in the long run.
In-Text Citing
 More than one work
 Scholars like Li et al. (2013; 2011); Hansen & Rand (2006); Choe (2003); Basu et al.
(2003) have all established empirically in one way the other with different
strategies but no study has looked at SSA exclusively hence then necessity for this
study.
 Osei-Fosu et al. (2016; 2015) concluded that the beneficial effect of FDI is more
prominent in export promoting than import substitution countries
 An alternative to the neoclassical growth models, endogenous growth models
take into account intermediate goods, social, institutional and government
policies, and other factors as well as more traditional inputs (Barro, 2017; Hall &
Jones, 2016).
 Osei-Fosu (2015a) established that evidence of FDI –led growth hypothesis is
mixed and the impact of FDI on economic growth depends on the host country’s
specific characteristics
 In-Text Citing: Example of Secondary Sources
 Over the past two decades, remarkable growth in the demand for
microfinance services has been observed around the globe.
Statistics show that between 1997 and 2013, the demand for
microfinance services has grown by at least 19%, generating an
excess of 3,000 microfinance institutions and 200 million
borrowers by 2016 (Buera et al., 2018).
 The reference
 Buera, F. J., Kaboski, J. P. and Shin, Y. (2018). “Taking stock of the
evidence on micro-financial interventions”, In Barrett, C. B., Carter,
M., Chavas, J. P., and Carter, M. R. (eds) (2018). The economics of
poverty traps, University of Chicago Press. https:// doi. org/ 10.
7208/ 97802 26574 448
118
 End-Thesis Referencing
 Names of all authors, beginning from the first and in order
 Surname and Initials of each author
 Date
 Title of work
 Publisher and city of publication, if it is book
 Journal in which it is published and the volume if an article
 Website where the work is found if not published work, and the date you accessed the
work
 If unpublished thesis, indicate in brackets (unpublished thesis)
 If it is a working paper or paper for presentation, indicate where it was read or sent
 Arrange all references in alphabetical order based on the surname of the first author
 Follow the standard punctuations
 Include all works cited in the main text in the list of reference
 Do not include any reference not cited in the main text
 Reference
Aanye, D. M. (2012). “The Impact of Oil Price Change on Ghana’s Economy”, CAR(CEPMLP) Annual Review, 17.
Adams, S. & Atsu, F. (2014). “Aid Dependence and Economic Growth in Ghana”, Economic Analysis and Policy, 44(2)
Adu, G., Marbuah, G. & Mensah, J. T. (2013). “Financial Development and Economic Growth in Ghana: Does the Measure of
Financial Development matter?” Review of Development Finance, 3(4)
Amanor, K., Oteng-Abayie, E. F., Osei-Fosu, A. K. and Boakye, F. P. (2023). “A Decomposition Analysis of Microcredit Welfare Gaps in
Ghana. A Gender Analysis”, Journal of Social Sciences and Humanities, Elsevier, Open 7
Azman-Saini, W. N. W., Baharumshah, A. Z. & Law, S. H. (2010). “Foreign Direct Investment, Economic Freedom and Economic
Growth: International Evidence”, Economic Modelling, 27(5)
Buera, F. J., Kaboski, J. P. and Shin, Y. (2018). Taking stock of the evidence on micro-financial interventions. In: Barrett, C. B., Carter,
M., Chavas, J. P., and Carter, M. R. (eds) (2018). The economics of poverty traps. University of Chicago Press. https:// doi. org/ 10.
7208/ 97802 26574 448
Bayraktar-Saǧlam, B. & Yetkiner, H. (2014). “A Romerian Contribution to the Empirics of Economic Growth”, Journal of Policy
Modeling, 36(2).
Belo, F., Gala, V. D. & Li, J. (2013). “Government Spending, Political Cycles, and the Cross Section of Stock Returns”, Journal of
Financial Economics, 107(2)
Centre for Policy Analysis (2007). “Public Expenditure Management in Ghana (2001-2006)”, Retrieved from
www.cepa.org.gh/researchpapers/GSEI%20No.%2017%20PEM%20in%20Ghana48.pdf (Accessed on July 12, 2017)
Chen, Z. C. Z. (2010). “Government Expenditure and Economic Growth in China”, Paper submitted to 2010 International
Conference on Computer Application and System Modeling (ICCASM)
 Drake, D. and Rhyne, E. (2002). The Commercialization of Microfinance: Balancing Business and Development,
Bloomsfield, Kumarian Press

 European Commission (2001). “Promoting a European Framework for Corporate Social Responsibility”,
Commission Green Paper- 2001.

 Helms, B. (2006). Access for All: Building Inclusive Financial Systems, Washington DC, World Bank Publications

 Johnson, S. and Rogaly, B. (1997). Microfinance and Poverty Reduction, London, Oxfam and ActionAid

 Kojo Ayesu, E., Sakyi, D., Arthur, E. and Osei-Fosu, A. K. (2022). “The impact of trade on African welfare: Does
seaport efficiency channel matter?” Research in Globalization, Vol. 5

 Osei-Fosu, A. K., Baba, I. and Ofori-Boateng, K. (2015). “Real Exchange Rate Volatility and Foreign Direct Investment
Inflows: The Ghanaian Experience”, International Journal of Empirical Finance, Vol. 4, No. 6: 336-344.

 United Nations (2005). “Building Inclusive Financial Sectors to Achieve the Millennium Development Goals”,
United Nations Concept Paper, International Year of Microcredit

 Trading economics (2016). Ghana Government Spending (2012-2016) Data, Chart, Calendar, and Forecast. Retrieved
from http://www.tradingeconomics.com/ghana/government-spending (Accessed on July 12, 2017)

121
THANK YOU
ECON 580: RESEARCH METHODS
IN ECONOMICS

LECTURE FIVE
METHOD OF STUDY

PROF. OSEI-FOSU, ANTHONY

KOFI (PHD)
Associate Professor
DEPARTMENT OF ECONOMICS
KNUST, KUMASI
Research onion presents a clear frame work for the most
suitable methods and strategies to address a research

124
Method of Study

OUTLINE (SECONDARY RESEARCH)

 Research Design
 Model Specification
 Description of variables
 Estimation techniques
 Data sources

OUTLINE (PRIMARY RESEARCH)

 Research Design
 Population, Sample and Sampling Techniques
 Data Collection Techniques and Instruments
 Method of Data analysis
 Model Specification
125
Research Design
 Research design provides the clue that holds the research project
together.
 A design is used to structure the research to show how all of the
major parts work together to try to address the central research
questions.
Types of Research Designs
There are various schemes in classifying research designs
A: Dimension
• Census Research design
• Case Study Research design
• Sampling Research design
A: Means of Deriving Data
 Survey Research Design
 Action Research Design
 Exploratory Research Design
 Experimental Research Design
B: Means of Analyzing Data
 Explanatory Research (how?)
 Descriptive Research (who, what, where, how)
 Causal Research (If-then)
 Quantitative Research (estimation)
 Qualitative Research (non-estimation)
SECONDARY RESEARCH

128
Model Specification (Parametric Analysis)
 This is setting up or formulating your equation
 The model should have a theoretical or empirical basis, in terms of;
 The form it should take
 Variables to be included
 You either adopt it
 Or modify
 In any of the cases, there should be laudable reason

129
Description of Variables
 You need to describe each variable in the model: dependent and
independent (target and control variables)
 Explain how the variables are measured
 Outline the a priori expectations of the βs
 Give the theoretical bases of the expected signs

130
Estimation Techniques
 Outline the method of analysis
 The type of regression
 Given reason(s) for the particular choice
 Outline all the diagnostic test
 Outline the software used; Stata, SPSS, Eviews, etc

 Or the type of estimation, if non-parametric analysis

 Given reason(s) for the particular choice

131
Data Sources
 Outline the various sources of data
 This should be specific to a variable
 Do not lump them.
 If it is a composite data, describe how they were measured or
obtained
 Outline the type of data:
 Time series
 Cross-section
 Panel data

132
PRIMARY RESEARCH

133
Sampling

Sample: subset
of a larger population Sample

Types Sampling
 Random
 Non-Random
Population

134
135
Sampling Methods/Sampling Procedures
 Probability/Random sampling techniques:
 Simple Random Sampling
 Systematic Sampling
 Stratified Sampling
 Cluster or Multi-stage Sampling
Non-probability /Non-Randomised Sampling Methods
 Convenience (Haphazard) sampling
 Judgment / Purposive sampling
 Quota sampling
 Snowball sampling
 Self-selection sampling
Sample size determination
 It is the act of choosing the number of observations to include
in a statistical sample. In practice, the sample size is based on;
the expense of data collection, and
the need to have sufficient statistical power.
 In complicated studies there may be several different sample
sizes involved in the study:
 In a survey sampling involving stratified sampling there would be
different sample sizes for each population.
 In a census, data are collected on the entire population, hence
the sample size is equal to the population size.
 In experimental design, where a study may be divided into
different treatment groups, there may be different sample sizes
for each group.
 Sample sizes may be chosen in several different ways:
Expedience - For example, include those items readily available or
convenient to collect.
A choice of small sample sizes, though sometimes necessary, can
result in wide confidence intervals or risks of errors in
statistical hypothesis testing.
Using a target variance for an estimate to be derived from the
sample eventually obtained
Using a target for the power of a statistical test to be applied once
the sample is collected.
Factors in Determining Sample Size
• Three factors are required to specify sample size
 The Heterogeneity (variance) of the population. Only small
sample is required if the population is homogeneous.
 The magnitude of acceptable error (± some amount). The
magnitude of error (e) indicates how precise the estimate
must be.
 The confidence level (90%, 95%, 99%). It specifies the
probability that a sample (mean) would lie within the
population.
 Calculating Sample Size
N
n
Where n = Sample size
1  N ( e ) 2

N = Population size
e = Level of error (or precision)

(Yamane, 1967)
 2
 zs 
n 
 e 
where
z  standardized value that corresponds to the confidence level
X-
z

s  sample standard deviation or estimate of the population standard deviation

 X  X
n
2
i
s i 1

n  1
e  acceptable magnitude of error
 2
z sp
n 2
e
where
z 2  square of confidence level in standard error units
Sp  estimated proportion of success
q  1 - p, or estimated proportion of failures
e 2  square of the maximum allowance for error between the true
proportion and the sample proportion, or z squared
Types and Data Sources
There are two types of data: Primary and Secondary data.
 Primary data are those which are collected for the first time and thus
happen to be original in character.
 The popular ways to collect primary data consist of surveys,
interviews and focus groups, observation, experiment, among others
 Secondary data are those which have been already collected by other
agency and have already been processed.
 Sources include; Statistical year books, digest, bulletin, Annual
reports, etc.
 (Note: articles, journals, thesis reports, magazines, news papers, etc. are not
sources of data)
Data Collection Techniques and Instruments
1. Qualitative data Collection Methods/ Instruments
Observation ----------------------- Observation guide
Focus group discussion --------- Interview guide
Key Informants Interview ------- Interview guide

2. Quantitative Data Collection Methods/Instruments

Survey Method ------- questionnaire/ Likert scale
Mode - Assisted-administration
- Unassisted-administration
- Internet-administration
Interview Method ---- questionnaire / interview guide/ Likert scale
Mode - Face-to-face interview
- Telephone interview
Obtaining Quantitative data from Qualitative data

 The of scaling or scoring

 The use of Dummy variables; categorical
 The use of Proxy variables
 The use of Contingency methods; willingness, surrogate, Hedonistic,
etc.
Categories of Data
 Time Series Data
 Cross-Section Data
 Panel Data
 Time Series Data
GDP (%million) of Ghana (1990-2003)
YEARS GDP ($m)
1990 40753.9
1991 57404.4
1992 54965.9
1993 86954.4
1994 127664.6
1995 171666.9
1996 231800.1
1997 369609.8
1998 410018.5
1999 655590.9
2000 877746.1
2001 1209175.5
2002 1265595.9
2003 1996842.7
148
 Time Series Data
Selected Macroeconomic Indicators of Ghana (1990-2003 )
External
YEARS GDP ($m) FDI ($m) Credit ($m)
1990 40753.9 17191.9 57945.8
1991 57404.4 31602.9 89007.3
1992 54965.9 31425.7 86390.7
1993 86954.4 39641.3 126959.7
1994 127664.6 58973.2 186637.8
1995 171666.9 87878.6 259545.5
1996 231800.1 127266.7 359066.8
1997 369609.8 220176.9 589786.7
1998 410018.5 199862.6 609881.1
1999 655590.9 217366.3 872957.1
2000 877746.1 317671.0 1195417.1
2001 1209175.5 679117.2 1888292.7
2002 1265595.9 1143013.2 2408609.0
2003 1996842.7 1186987.3 3183830.0
 Cross-Section Data
INFLATION OF SOME SELECTED WEST AFRICAN COUNTRIES IN 2013

COUNTRY INFLATION
GHANA 10.25
NIGERIA 12.85
TOGO 11.50
COTE D’VOIRE 13.00
BENIN 15.60
BURKINA FASO 18.60
NIGER 21.75
GAMBIA 23.50

150
 Cross-Section Data
MACROECONOMIC INDICATORS OF SOME SELECTED WEST AFRICAN COUNTRIES IN 2013

COUNTRY INFLATION INTEREST RATE EXCHANGE RATE

GHANA 10.25 19.75 37.20

NIGERIA 12.85 20.25 18.00

TOGO 11.50 22.60 10.02

COTE D’VOIRE 13.00 20.50 24.96

BENIN 15.60 25.25 24.90

BURKINA FASO 18.60 29.00 59.50

NIGER 21.75 29.50 32.70

GAMBIA 23.50 30.00 20.70

 Panel Data
GDP ($million) OF SELECTED COUNTRIES IN WEST AFRICA
(1991-1995)

Year Ghana Togo Nigeria

1991 40753.9 17191.9 579455.8
1992 57404.4 31602.9 890072.3
1993 54965.9 31425.7 863909.7
1994 86954.4 39641.3 1269591.7
1995 127664.6 58973.2 1866370.8

152
 Panel Data
MACROECONOMIC INDICATORS OF SELECTED COUNTRIES IN
WEST AFRICA (1991-1995)
GHANA
GDP IMPORT EXPORT INTEREST INFLATION EXCHANGE
YEARS ($’ M) (US$’ M) (US$’ M) RATE (%) RATE (%) RATE (%)
1991 40753.9 17191.9 57945.8 10.25 19.75 37.2
1992 57404.4 31602.9 89007.3 12.85 20.25 18
1993 54965.9 31425.7 86390.7 11.5 22.6 10.02
1994 86954.4 39641.3 126959.7 13 20.5 24.96
1995 127664.6 58973.2 186637.8 15.6 25.25 24.9
NIGERIA
1991 171666.9 87878.6 259545.5 18.6 29 59.5
1992 231800.1 127266.7 359066.8 21.75 29.5 32.7
1993 369609.8 220176.9 589786.7 23.5 30 20.7
1994 410018.5 199862.6 609881.1 18.5 27 18.6
1995 655590.9 217366.3 872957.1 19.5 29.75 12.4
TOGO
1991 877746.1 317671 1195417.1 20.25 34 25.2
1992 1209175.5 679117.2 1888292.7 22.5 32 21.3
1993 1265595.9 1143013.2 2408609 20.75 31.25 15.2
1994 369609.8 220176.9 589786.7 23.5 30 20.7
1995 1996842.7 1186987.3 3183830 20.95 28.5 23.6
Outline of Method of Analysis
 Type of data and analysis: Quantitative or Qualitative
 Method of Quantitative analysis:
 Non-Parametric and
 Parametric analysis
 Justify the method used
 Outline the method thoroughly
 Stata, SPSS, Eviews, etc
 Method of Quantitative analysis: Software used:
 Justify the method used
 Outline the method thoroughly
 Software used: Invivo, Rgue
THANK YOU