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(1) Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organisation. 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.
(2) Research provides the basis for nearly all government policies in our economic system eg. government budgets. In the context of government, research as a tool to economic policy has three distinct phases of operation, viz.,
o (i) investigation of economic structure through continual compilation of facts;
o (ii) diagnosis of events that are taking place and the analysis of the forces underlying them; and
o (iii) the prognosis (forecast, prediction), i.e., the prediction of future developments..
(3) Research has its special significance in solving various operational and planning problems of business and industry. Operations research refers to the application of mathematical, logical and analytical techniques to the solution of business problems of cost minimisation or of profit maximisation or what can be termed as optimisation problems.
(4) Research is equally important for social scientists in studying social relationships and in seeking answers to various social problems. Research in social sciences is concerned both with knowledge for its own sake and with knowledge for what it can contribute to practical concerns.
Kavungya answered the question on March 7, 2019 at 06:07