Introduction
This essay aims to compare and contrast the research methods used in two research papers related to a similar topic and the chosen topic is “relationship between economic growth and poverty.” Both the papers have different methodologies of research one using quantitative and the other using qualitative. The basic difference between quantitative and qualitative research is of the structure and data analysis since quantitative analyses the data statistically and qualitative is unstructured so it analyses data non-statistically.
Overview of the papers
The paper by Bigsten et al studies poverty growth and reduction in Ethiopia. On the other hand, the other paper is focused on counting the poor people in the world through household panel surveys. The paper on poverty in Ethiopia has used quantitative research method so the data has been quantified and the results derived accordingly plus a large number of case representatives have been used thus a large sample has been used, the data collection is structured and the analysis of the data has been done using statistic methods. There are recommendations as well. This paper studies the effects of growth in poverty in Ethiopia and the data used to analyze the research topic has been taken from panel data taken for the period 1994-1997. This period has been taken because it was prominent for a recovery of the economy and good macroeconomic management by the Ethiopian government. The analysis shows the determinants or other factors that have a greater impact on poverty compared to growth and these include ownership of land, education statistics, and the kinds of crops that have been planted, the types of occupations in the urban areas, dependency ratio, and location. The part of the population that remained poor during this recovery period has also been analyzed. Possible solutions to analyze the data have been discussed and the problems related to the proposed solutions have also been included. The rural area has also been studied with the initialization of export crops and the effect of this growth perspective on poverty. Trade played an important part in recovering the economy and globalization was the foundation. Since the 1960’s the world was pretty conservative and it was the anti-globalization scheme that brought globalization into existence. The world was restricted with trade barriers and capital movements were not allowed. But the significant elements rebelled and globalization came into being which catapulted the entire world into one single place and the world was integrated to be one. The current global economy has gone through major changes in trends and growth patterns. Demand, consumption patterns, regulatory environment changes, and changes in global trade are all included in the changing trends in the economy. In this world of uncertainties, problems occur and solutions are to be sought but apart from all that is out of hand we humans still wish to improve and bring about changes in our lives in every way we can. Overall primary education has been considered to be the most important role player in the welfare of both urban as well as rural areas. The impact of unequal income distribution in the face of an increasing per capita income has also been analyzed since it contributed to the increase in poverty. The paper discusses a pro-poor policy as well. To conclude the paper highlights indirectly the weak relationship between poverty and economic growth since other factors as pointed above play a more important role in having an impact on poverty.
The other paper focuses on counting the poor in the world and the paper proposes solutions on how to research on the topic and the negative aspects related to the solutions have also been highlighted. The paper discusses how the world has seen immense economic growth but that has did not affect poverty levels since poverty levels continue to rise. The regular revision of purchasing power parity and exchange rates contributes most to the increase in poverty levels all over the world. At a domestic level, the paper highlights the problems in counting poverty within individual countries and at times the figure is manipulated or inappropriate. Therefore, the surveys of poverty count or economic growth percentage vary immensely all over the world. The paper studies the relationship between poverty and economic growth and the analysis proves that economic growth has a weak relationship with poverty and an increasing economic growth does not mean poverty will decrease. The current global economy has gone through major changes in trends and growth patterns. Demand, consumption patterns, regulatory environment changes, and changes in global trade are all included in the changing trends in the economy. The industrialized economies are finding it hard to sustain consumption and demand patterns and this is due to the deterioration of the global environment and this caused by environmental stress which is the immediate effect of increasing poverty levels in countries around the world. The consumption patterns in some parts of the world are very high but demand is still not fully being met. The natural resources are being depleted and the environment is in danger. Excessive demand is damaging the environment because the lifestyles of the richer segment are lavish and unsustainable and the poor are not even receiving basic survival needs and this extremity in society caused by changing consumption and demand patterns is damaging the environment and the world economy. The energy products like natural gas, oil, etc are being sold at different prices all over the world to industrial customers and final consumers which have further caused uncertain demand and consumption patterns. Urbanization has resulted in changing consumption and demand patterns since a segment of the population has distinct lifestyles that are lavish and have pushed demand up. The regulatory environment which includes taxes, interest rates, inflation rates are all changing now as well. Inflation causes interest rates to shoot up.
Other methods that could have been used
Bigsten et al in their paper that study the impact of growth on poverty in Ethiopia and the paper shows economic growth has a weak relationship with poverty since other factors play a much more important role. They have used entirely quantitative methods of research and they have used statistical models to analyze the data. The paper has used a household survey as a basis and then the statistical inferences have been used to analyze the data to prove the determinants. The paper is based on economic functions tested to statistical procedures and the Lorenz function has also been used. Each variable has been tested according to its mean values. These mean values have formed the basis of the nonrandom selection of the sample used for the study. Therefore, the paper includes tables and estimates for better analysis unlike Deaton’s paper that uses qualitative methods of research for analysis. This paper is well researched and the findings are of course authentic due to the method of research used. The data could have been analyzed using two regression models for a pure and more detailed quantitative analysis of the data. The two regression models could be the Probit model and the multinomial logit model. These models have been used before for similar researches and the findings have been accurate to a great extent. In probit, the dependant variable is a function of the explanatory variables and in multinomial the dependant variable can be categorized into three different mutually exclusive headers. If I had conducted the research I would have used these two models because they have been proven to give accurate results in previous researches. I would have rather analyzed the data from the household surveys based on the two models proposed since the estimations in the paper are economically based and if a new model is used the data could be analyzed in a better way comparatively. The paper proves which determinant plays a greater role in having an impact on the poverty level in Ethiopia. Had I done this paper a detailed literature review would have been a part of the paper since it formulates a background to the study, especially for the reader/sponsor. I would have included a section that discusses specifically the methods of research used to make it even more authentic and organized for the reader/sponsor.
Deaton’s paper on counting the poor people in the world has used surveys as the method of research and specifically, the household surveys have been used as the basis of the research. The paper is a World Bank survey and it is based on Human Development Index as an important aspect of the research. The paper discusses the problems in counting poor people all over the world since purchasing power parity and poverty baseline differs for each country and is subject to change. They have discussed the authenticity of household survey data and national accounts since these can not be entirely accurate. The paper uses previous research studies conducted by the bank as a basis. The problems with measuring consumption and price indexes have also been discussed in the light of previous researches and assumptions. Had I done this research I would have rather focused the research on continents for the study to be more focused since counting poor people all over the world is not possible. The focus could be poverty levels in continents and the data could have been acquired from the World Bank. This would have been a better way of counting poor people all over the world with a firm foundation. The research could be more authentic and reliable if done this way. The author has proposed the same solution in the paper that the World Bank must now focus on broader aspects rather than going for a headcount of poverty levels in the world. I would have done this paper using quantitative statistical methods to come up with figures like the Lorenz model so that the data evaluated is more concrete and can be quoted.
Strengths and Weaknesses of both Papers
The paper by Bingsten et all is quantitative has proved with statistical models that which determinant has a greater impact on poverty thus proving that economic growth does not have much impact on poverty alone. This is a major strength of the paper. The paper requires a detailed literature review since a review of literature will make the paper much more authentic. This is a weakness of the paper. Although the paper has proved certain determinants a literature review is important to have a clear background to the study because while reading this paper I looked into related research papers for a better understanding of the paper therefore I believe a literature review is lacking in an otherwise strong research paper.
The paper by Deaton is a qualitative paper discussing ways to count the poor people in the world. The major strength of this paper is that it discusses all possible solutions to count the poor people in the world and this way it can serve as a base paper for many further research papers. This is a major strength of the paper since a detailed literature review has been used to discuss each possible solution and method of research to count poor people in the world. The paper is not focused since it is about the world so it just discusses ways to count poor people in the world and this would have been better achieved via a quantitative method of research to come up with exact figures to support the statement. This is a major weakness of the paper because it is impossible to count every poor person in the world the World Bank needs to focus on broader aspects or maybe considering specific continents to study poverty.
Conclusion
The two research papers used in this essay have used qualitative and quantitative research methods. The papers have been compared in terms of the method of research highlighting the strengths and weaknesses of each paper. The methods have been defined and the literature used as a basis has been discussed. The strengths and weaknesses of each paper have been discussed. The paper’s research methods have been explained and the alternative methods that could have been used have also been indicated for better research. Both papers are related to study the relationship between economic growth and poverty. Both papers reach a similar conclusion that growth has a weak relationship with poverty but one does it better than the other. Therefore the recommendations have also been included.
Works Cited
Bigsten, A; et al. “Glass Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys.” World Development 31 (1) (2003): 87-106.
Deaton, A. “Counting the World’s Poor: Problems and Possible Solutions” The World Bank Research Observer (2001): 125-147.