Collecting such statistical information is by no means a routine task, but it involves a variety of research problems. Such information indicates what is happening in the economy and what changes are taking place. Thus, research is considered necessary with regard to the allocation of nation’s resources.Īnother area in government, where research is necessary, is collecting information on the economic and social structure of the nation. The plight of cultivators, the problems of big and small business and industry, working conditions, trade union activities, the problems of distribution, even the size and nature of defence services are matters requiring research. Government has also to chalk out programmes for dealing with all facets of the country’s existence and most of these will be related directly or indirectly to economic conditions. Through research we can devise alternative policies and can as well examine the consequences of each of these alternatives.ĭecision-making may not be a part of research, but research certainly facilitates the decisions of the policy maker. The cost of needs has to be equated to probable revenues and this is a field where research is most needed. Research provides the basis for nearly all government policies in our economic system.For instance, government’s budgets rest in part on an analysis of the needs and desires of the people and on the availability of revenues to meet these needs. Research, as an aid to economic policy, has gained added importance, both for government and business. The increasingly complex nature of business and government has focused attention on the use of research in solving operational problems.
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The role of research in several fields of applied economics, whether related to business or to the economy as a whole, has greatly increased in modern times. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. Increased amounts of research make progress possible. Doubt is often better than overconfidence, for it leads to inquiry, and inquiry leads to invention” is a famous Hudson Maxim in context of which the significance of research can well be understood. Significance of Research in Research Methodology