Lecture 2 Problem Identification Introduction to broad problem

Lecture 2 Problem Identification Introduction to broad problem area Defining the problem statement Information gathering Research questions and objectives 1 dr. m_econ@uitm. kedah 9/25/2021

2 Lesson Outcome – By the end of this topic, students should be able to: ü Identify a problem of research interest ü Describe the nature of that problem ü Generate a good problem statement ü Generate a set of research objectives ü Create a set of research questions dr. m_econ@uitm. kedah 9/25/2021

3 What is a problem? Recall a research process q A research must begin with a topic / issue. From a topic, you need to identify a problem. q Do you have an area of interest? q A problem can refer to any of the followings: ü Area of concern ü Situation or condition to be improved ü Something bothers your mind ü Difficulty that needs to be removed dr. m_econ@uitm. kedah 9/25/2021

4 Socio-economic issues / difficulties / challenges – What are the current concerns of the public? dr. m_econ@uitm. kedah 9/25/2021

Broad Problem Area 5 – Think of the BIG PICTURE • Consider your field: economics – Which is your area of interest? Do you have any? – What is the problem you are concerned with? – Think of something you like to learn more, understand more – Consult text books, relevant journals or your supervisor – Pick one based on (narrowing the focus): – Interest and relevance – Magnitude of work involved – Level of expertise – you and your advisors dr. m_econ@uitm. kedah 9/25/2021

6 Economics Micro & macroeconomics Monetary economics Financial economics Agricultural economics Labour economics Public economics Health economics Regional economics Industrial economics dr. m_econ@uitm. kedah 9/25/2021

Public finance 7 Government spending • Govt final consumption expenditure • Govt operations • Redistribution of wealth • Transfer payment Government revenue • taxation • Non-tax revenue dr. m_econ@uitm. kedah Deficit spending • budget • Surplus / deficit Government debt • Domestic • foreign 9/25/2021

Corporate finance 8 Accounting Venture capital Capital budgeting Structured finance audit Financial risk management Credit rating agency Mergers and acquisition dr. m_econ@uitm. kedah Financial statement Leveraged buyout 9/25/2021

Personal finance 9 Credit and debt Employment contract Financial planning Retirement Financial aid dr. m_econ@uitm. kedah 9/25/2021

Broad topic to narrow topic Broad topic 10 Narrow topics Efficiency and productivity Factors influencing the efficiency of commercial of firms / labours banks Factors influencing the productivity of labour force in Malaysia Performance of public sector Factors behind the growth of public debt Impact of public debt on economic growth Sustaining Agricultural development Factors affecting the supply chain of agricultural product The impact of manufacturing growth on agricultural sector Sustaining Malaysia’s economic growth Factors influencing the growth of manufacturing sector Effect of external sector on national income Determinants of domestic investment in Malaysia Determinants of outflow FDI from Malaysia dr. m_econ@uitm. kedah 9/25/2021

Examples of research artiles: Source: https: //www. journals. elsevier. com/finance-researchletters/recent-articles 11 – Xuan Vinh Vo and Craig Ellis, 2017. An empirical investigation of capital structure and firm value in Vietnam. – Danilo Drago, Caterina Di Tommaso and John Thornton. 2017. What determines bank credit default swap (CDS) spreads? Evidence from European and US banks. – Wenlong Bian and Chao Deng. 2017. Ownership dispersion and bank performance: Evidence from China. – Nicholas Apergis. 2017. Democracy and market crashes: Evidence from a worldwide panel of countries Pradit Withisuphakorn and Pornsit Jiraporn. 2017. CEO age and CEO gender: Are female CEOs older than their male counterparts? Maria Gerhardt and Rudi Vander Vennet. 2017. Bank bailouts in Europe and bank performance – Naseem Ahamed and Nitya Nand Tripathi. 2016. Capital structure 9/25/2021 determinants: dr. m_econ@uitm. kedah an empirical study in a growing economy of the emerging

Example of research articles Source: International Journal of Economics and Business Research 12 – Mouldi Ben Amor and Mustapha Ben Hassine. 2017. The relationship between unemployment and economic growth: is Okun's Law valid for the Saudi Arabia case? . – Md. Tofael Hossain Majumder and Mohammad Jashim Uddin. 2017. The determinants of profitability of nationalised banks in Bangladesh. – Ilias A. Makris. 2017. Analysing the effect of macroeconomic characteristics, on firm performance: evidence from selected countries of Eurozone – Jordan French. 2016. Economic determinants of wine consumption in Thailand. – dr. m_econ@uitm. kedah 9/25/2021

13 How much choice you have Access issues The resources you have available Methods for researching Issues to conside r Your need for support The cost of research Your motivation Regulations and expectations The time you have available Your subject or field of study dr. m_econ@uitm. kedah The size of your topic 9/25/2021

14 What to research: – Stereotype approach? – Reverse psychology? – A step beyond? – New knowledge? dr. m_econ@uitm. kedah 9/25/2021

15 Never try a topic that you believe can change the world !!! WHY? ? ? dr. m_econ@uitm. kedah 9/25/2021

Information gathering 16 – Do you really understand the nature of the problem? – Have you generated and refined research ideas? – Have you identified potential variables involved? – Are the variables measurable or not? – Do you have access to the data? dr. m_econ@uitm. kedah 9/25/2021

Generating research ideas 17 for generating and refining research ideas Techniques Rational Thinking Creative Thinking Examining your own strengths Keeping a notebook of your and interests ideas Examining staff research interests Exploring personal preferences using past projects Looking at past project titles Exploring relevance to business using the literature Discussion Relevance trees Searching the literature Brainstorming Scanning the media Source : Saunders et al, 2012, p 31. dr. m_econ@uitm. kedah 9/25/2021

18 a problem statement Defining q. Research as a problem-oriented approach q. Problems can be identified as evidence that objectives are not being achieved. q. Thus a problem can be identified by referring to a set of objectives the basic question is ‘how do we know we have got a problem? q. But the two concepts, objectives and problems, are two sides of the same coin. q. We can start either with objectives or problems and come to the same conclusions. Normally starts with a problem dr. m_econ@uitm. kedah 9/25/2021

19 Examples of objectives to be achieved – Malaysia sets an objective of economic growth of 4% in 2017. – Maybank plans to achieve a 5% loan growth in 2017. – Malaysian government sets a 3% budget deficit of GDP in 2017. – BNM targets an inflation of 3% in 2017. dr. m_econ@uitm. kedah 9/25/2021

Research 20 questions and objectives – Research ideas must be turned into research projects – Defining research questions is not a straight forward matter (Saunders et al, 2012). The research questions will lead to research objectives. – Consider a research idea about the outflow of capital from Malaysia to abroad and the following set of questions: q “What is the trend of capital outflow from Malaysia for the last 20 years? ” q “When does the outflow of capital from Malaysia exceed the inflow of capital into Malaysia? ” q “What are the reasons for capital outflow from Malaysia? ” q What is the impact of capital outflow on Malaysian economy? dr. m_econ@uitm. kedah 9/25/2021

– Consider a question that commences with ü 21 What ü When ü Where ü Who ü How ü Why ü To what extend dr. m_econ@uitm. kedah 9/25/2021

Examples of research ideas and resulting research questions 22 Research ideas Outflow of FDI and investment incentives in the host country Research questions Do the tax incentives offered by Vietnam have any impact on the outflow of FDI from Malaysia? Corporate social responsibility and firm What is the impact of CSR upon Bank performance Rakyat performance? The value of a currency and trade balance To what extend the trade balance affect the currency value? Internet and banking operation What is the impact of internet transaction on the banking performance? dr. m_econ@uitm. kedah 9/25/2021

Writing research objectives 23 – Research question is about the issue or problem that you want to study. – Research objective is about how to operationalise the question i. e. to state the steps you intend to take to answer it. Criterion Purpose Transparency The meaning of the research objective is clear and unambiguous. Specificity The purpose of the research objective is clear and easily understood. Relevance The research objective’s link to the research question and wider research project is clear. Interconnectivity The research objectives illustrate the steps in the research process from its start to its conclusion. Answerability The intended outcome of the research objective is achievable. Measurability The intended product of the research objective will be evident when it has been achieved. dr. m_econ@uitm. kedah 9/25/2021

Ways to think of a research topic – – – – – 24 Ask your supervisor, manager, colleagues, clients, customers etc Look at previous research works of one’s research area Develop some of your previous research or your practice at work Related to your other interests Think of a title Start from a quote that engages you Follow your hunches Draw your self a picture or a diagram Just start anywhere But be prepared to change direction Source: Blaxter, Hughes and Tight (2001) dr. m_econ@uitm. kedah 9/25/2021