How to Write Economics Research Paper: Ultimate Guide

The economic research paper is an important part of an undergraduate economics course. It is one of the main assignments that students have to complete.

This assignment aims to help students understand how to conduct economic research and find out what information can be found in different sources.

However, many students are intimidated by economics research paper assignments. This is why Paper Perk has brought you this step-by-step tutorial on how to write an economics paper.

Why is it important to conduct research on the economy?

The economy is a complex and ever-evolving system that affects every aspect of our lives. From the prices we pay for goods and services to the job opportunities available, the economy shapes our financial well-being and overall quality of life.

Researching the economy allows us to better understand the forces at play, make informed decisions, and contribute to developing policies and strategies that promote economic growth and stability.

How to Write an Economics Research Paper That Inspires

Preparing to write a research paper can be daunting. But fear not! In this comprehensive guide, we’ll walk you through the process of writing step by step, ensuring you create a well-structured and insightful paper.

We’ll also focus on the decision-making process regarding the type of paper you’ll write, the data collection methods, and the importance of research objectives and questions. So let’s dive in!

Step 1: Choosing the Type of Paper— Qualitative vs. Quantitative

The first step in writing an economics research paper is deciding whether you’ll be crafting a qualitative or quantitative paper.

Choosing the type of paper is important as it helps to structure and organize the information you gather through your research.

It also helps you determine the purpose and approach of your study. You will choose among the

following two types depending on your research topic and its objective.

This will communicate the focus of your research and serve your audience’s expectations. A qualitative paper is primarily theoretical, exploring concepts, frameworks, and ideas.

On the other hand, a quantitative paper combines data analysis with theory, aiming to provide empirical evidence to support or refute theoretical claims.

Qualitative Paper

If you opt for a qualitative paper, you’ll delve deep into economic theories and concepts. Your paper will be heavily based on existing literature.

And you’ll be expected to thoroughly analyze the subject matter. This type of paper is ideal for those who enjoy engaging with abstract ideas and developing logical arguments.

Quantitative Paper

A quantitative paper, on the other hand, requires you to collect and analyze data to support your hypotheses.

You’ll need to employ various statistical techniques and tools to make sense of the data and draw meaningful conclusions.

This type of paper is perfect for those who enjoy working with numbers and have a strong grasp of statistical methods.

Step 2: Data Collection— Primary vs. Secondary

Once you’ve decided on the type of paper you’ll write, you must determine your data collection method. The step takes place even before you craft your research paper outline. Ask yourself, “Will you collect primary data or rely on secondary data sources?”

Primary Data

Primary data collection involves gathering new data specifically for your research paper. Depending on your research objectives, this can be done through surveys, interviews, or experiments.

Collecting primary data allows you to tailor your data collection process to your specific research questions, ensuring that your data is directly relevant to your study.

Secondary Data

Secondary data, on the other hand, refers to data already collected by someone else. This includes government statistics, previous research data, or financial reports.

Using secondary data can save you time and resources, but you’ll need to ensure that your data is reliable, accurate, and relevant to your research question.

Step3: Choosing Your Research Methodology

Now, you might wonder how to choose the research methodology for an economics research paper? 

Choosing the right methodology for your economics research paper is crucial to ensure your findings are reliable and valid. 

Here are three examples of economics topics and potential statistical methodologies that researchers can apply to conduct their research, along with relevant software tools

Economics Research Paper Example 1.   

Topic: The impact of fiscal policy on economic growth

Methodology: To study the relationship between fiscal policy and economic growth, you can use time series or panel data analysis. This involves collecting data on fiscal policy variables (e.g., government spending, tax rates) and economic growth indicators (e.g., GDP) over time or across multiple countries. You can then apply econometric techniques such as Ordinary Least Squares (OLS) regression, Vector Autoregression (VAR), or Dynamic Panel Data models to estimate the effect of fiscal policy on growth. Software tools: EViews, Stata, and R are popular choices for time-series and panel data analysis in economics research.

Economics Research Paper Example 2. 

Topic: The determinants of foreign direct investment (FDI) in developing countries

Methodology: To identify the factors that influence FDI inflows in developing countries, you can use cross-sectional or panel data analysis.  You’ll need to collect data on FDI inflows and potential determinants, such as market size, political stability, and infrastructure quality. You can then employ regression analysis techniques, such as Multiple Linear Regression or Fixed/Random Effects models, to determine the most significant factors affecting FDI. Software tools: SPSS, Stata, and R are widely used for cross-sectional and panel data regression analysis in economics research.

Economics Research Paper Example 3.   

Topic: The effect of minimum wage increases on employment levels

Methodology: To analyze the impact of minimum wage increases on employment, you can use difference-in-differences (DID) or synthetic control methods. These techniques allow you to compare employment levels before and after minimum wage changes while controlling for other factors that might influence employment. By comparing the changes in employment in regions with minimum wage increases to those without, you can estimate the causal effect of the policy. Software tools: Stata, R, and Python are commonly used for implementing difference-in-differences and synthetic control analyses in economics research.

When choosing a methodology, researchers should consider the nature of their research question, the type of data available, and the specific objectives of their study.

By selecting an appropriate statistical methodology and using relevant software tools, you can ensure that your research findings are robust and meaningful.

Step 3: Crafting Your Introduction—- Research Objectives and Questions

Many students start a research paper by compiling the body first, but that is a strategy best suited for a college essay.

For economics research papers, it’s better to start with the introduction. Your introduction should clearly outline your research objectives and thesis questions.

This sets the stage for the rest of your paper, helping readers understand what you aim to achieve with your research and why it’s important.

Be sure to:

1. Clearly state your research objectives and questions.
2. Explain the significance of your research in the context of existing literature.
3. Provide a brief overview of the structure of your paper.

Step 4: Writing Hypothesis and Methodology

After outlining your research objectives and questions, you’ll need to develop a hypothesis. Based on your research question and existing literature, this is a statement of what you expect to find.

Your hypothesis will guide your data collection and analysis, helping you to stay focused on your research objectives.

Within the Hypothesis section, presenting a clear and testable statement that reflects your expectations based on the research question and existing literature is essential.

There are several types of hypotheses you can consider, depending on the nature of your research and the interests of your audience:

1. Null hypothesis (H0): This hypothesis states no significant relationship exists between the variables you’re studying. It serves as a baseline assumption you’ll attempt to disprove through your research.
2. Alternative hypothesis (H1): The alternative hypothesis posits that there is a significant relationship between the variables, challenging the null hypothesis. You’ll support this hypothesis if your findings contradict the null hypothesis.
3. Directional hypothesis: A directional hypothesis not only suggests a relationship between variables but also specifies the direction of the relationship (e.g., positive or negative correlation).
4. Non-directional hypothesis: This type of hypothesis predicts a relationship between variables but does not specify the direction of the relationship.

When writing economic research, present your hypothesis in a way that ensures that it is relevant to your audience’s interests and concerns.

By doing so, you’ll engage your readers and demonstrate the practical implications of your research, making your paper more compelling and impactful.

Next, you’ll need to choose a methodology for your research. This will depend on the type of paper you’re writing and your data collection method. Be sure to explain your chosen methodology clearly and justify your choice.

Step 5: Literature Review—- Building a Strong Foundation

Before diving into your findings, it’s crucial to conduct a thorough literature review. This section allows you to:

1. Familiarize yourself with existing research related to your topic.
2. Identify gaps in the literature that your research aims to fill.
3. Situate your research within the broader academic context.

Make sure to critically analyze the literature and highlight the key theories, models, and empirical findings that have shaped the field.

Step 6: Data Analysis— Making Sense of Your Findings

Once you’ve collected your data, you need to analyze it to draw meaningful results. In your result section, you’ll:

1. Present your data clearly and organized, using tables, graphs, or charts as needed.
2. Apply appropriate statistical techniques to test your hypothesis.
3. Interpret your results, explaining the patterns and relationships you’ve identified.

Be sure to discuss any limitations or challenges you faced during data analysis and how they may have impacted your findings.

Step 7: Discussion— Connecting the Dots

In the discussion section, you’ll synthesize your findings and relate them back to your research question and the existing literature. Here, you should:

1. Summarize your main findings and their implications.
2. Compare and contrast your results with previous research.
3. Address any discrepancies or unexpected results, offering possible explanations.

This section allows you to demonstrate your critical thinking skills and showcase the significance of your research.

Step 8: Conclusion— Wrapping It Up

The conclusion of your research is a chance to provide a concise summary of your research and its implications. In this section, you should:

1. Restate your research question and main findings.
2. Discuss the broader implications of your research for the field of economics and beyond.
3. Identify potential avenues for future research, highlighting any unanswered questions or new issues that have emerged from your study.

Step 9: Policy Recommendations— Translating Research into Action

The last part of your economics research paper is where researchers will translate the research into action. But how?

By extracting the answers to the research objective and producing useful recommendations. These recommendations will be related to the topic scope and future research in this area.

A research paper without a policy recommendation is nothing. That’s where researchers will get to know the scope and impact of your research.

Later, these can be a base of advance level policy building or solutions to authoritative bodies. Thus, play your part so well that your research paper can change the world.

10 Research Paper Topics in Economics

Our writers have compiled a list of ten economics research paper topics for your convenience. But if you still want more options, check out our article on 200 unique finance research topics.

1. The Impact of Artificial Intelligence on Labor Markets: Examining the Effects of Automation and AI Technologies on Employment, wages, and job polarization.
2. Income Inequality and Economic Growth: Analyzing the relationship between income inequality and long-term economic growth, exploring potential mechanisms and policy implications.
3. The Economics of Climate Change: Investigating the economic consequences of climate change, such as the costs of mitigation and adaptation strategies and the impact on economic sectors and welfare.
4. Digital Currencies and Monetary Policy: Assessing the implications of digital currencies (e.g., cryptocurrencies, central bank digital currencies) on monetary policy, financial stability, and payment systems.
5. Behavioral Economics and Nudging: Exploring the applications of behavioral economics principles in policy-making, focusing on the effectiveness of nudges in influencing individual and societal behavior.
6. Trade Wars and Global Economic Interdependence: Analyzing the Consequences of trade conflicts and protectionist policies on international trade, supply chains, and global economic integration.
7. Impact of COVID-19 on Labor Markets and Income Inequality: Investigating the short and long-term effects of the COVID-19 Pandemic on employment, income distribution, and inequality dynamics.
8. Financial Inclusion and Economic Development: Examining the Role of financial inclusion in promoting economic development, reducing poverty, and fostering entrepreneurship in emerging economies.
9. Energy Transition and Sustainable Development: Assessing the economic implications of transitioning to renewable energy sources, exploring the costs, benefits, and policy challenges associated with achieving sustainable energy systems.
10. Health Economics and Healthcare Systems: Analyzing the efficiency, equity, and sustainability of healthcare systems, exploring the impact of healthcare policies and interventions on population health outcomes and economic productivity.

Note: Some of the provided topics are inspired by existing research. However, our research paper writer have tried their best to give a new perspective to those topics. It’s important for you to carefully research each topic before deciding which one to write about.

This means looking into the subject more deeply to gather all the necessary information and make sure you understand it well. By doing thorough research, you can ensure that your chosen topic is original and unique.

Common Mistakes Students Commit While Writing an Economic Research Paper

1. Lack of clear research questions
2. Insufficient literature review
3. Weak and inadequate data analysis
4. Lack of structure organization
5. Not enough evidence to support your claim
6. Lack of clarity in writing
7. Submitting without proofreading

Students should carefully plan and outline their research papers to avoid these mistakes. Conducting thorough research and analyzing data accurately will also help.

Additionally, students should present arguments coherently, use clear and concise language, provide proper citations, and proofread the final draft meticulously.

Seeking feedback from professors or peers can also help identify and rectify potential mistakes before submitting the paper.

Conclusion:

In conclusion, writing an economics research paper may seem like a challenging endeavor. But by following this guide and focusing on the key steps outlined above, you’ll be well on your way to crafting a well-structured, insightful, and impactful paper.

However, we understand you might get caught in time constraints to meet deadly deadlines, so our experts are on their way to secure you. Whether you go for a simple research paper, a full-fledged research thesis, or a dissertation writing service is up to you. Just drop us a query to get the best possible help.