hypothetical research

1. HYPOTHETICAL RESEARCH ON
SOCIO-ECONOMIC ISSUE IN PAKISTAN.
Presented by: BBA 3A
Maria Afzal

2. STEP-1: RESEARCH PROBLEM
 One of the biggest socio-economic issues in Pakistan is of
unemployment and low business activities. Therefore, the
topic of group#1 research is “ What is the relationship
between low business activities and unemployment?”. To
further synchronize we are limiting our research to one of
the business hubs of Pakistan which is Karachi.
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3. STEP-2: LITERATURE REVIEW
 Foreign direct investment (FDI) has been viewed as a power
affecting economic growth (EG) directly and indirectly during the
past few decades. This paper reviewed an amount of researches
examining the relationships between FDI and EG, especially the
effects of FDI on EG, from 1994 up to 2012. The results show that
the main finding of the FDI-EG relation is significantly positive, but
in some cases it is negative or even null. And within the relation,
there exist several influencing factors such as the adequate levels
of human capital, the well-developed financial markets, the
complementarity between domestic and foreign investment and
the open trade regimes, etc. 2

4. STEP-3: DEVELOP HYPOTHESIS
 Independent Variable: Business Activity in Karachi, Pakistan
 Dependent Variable: Unemployment in Karachi, Pakistan
 Hypothesis:
HA: “Increase in Business activity in Karachi decreases
unemployment in Karachi.”
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5. STEP-4: DEVELOP NULL-HYPOTHESIS
 Independent Variable: Business Activity in Karachi, Pakistan
 Dependent Variable: Unemployment in Karachi, Pakistan
 Hypothesis:
Ho: “Increase in Business activity in Karachi does not
decrease unemployment in Karachi.”
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6. STEP-5: COLLECT DATA
3.65
4.03 4.24
6.3
6 5.9
0
1
2
3
4
5
6
7
2013 2014 2015
Rates%
Years
Relationship between Economic growth and unemployment Rate.
Economic growth Unemployment Rate Linear (Economic growth) Linear (Unemployment Rate)
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7. STEP-6: DATA ANALYSIS
 As shown in data, Economic growth was only 3.65% in 2013
where unemployment was 6.3%. However, economic growth
started increasing to 4.03% in 2014 and 4.24% in 2015
which lead unemployment to decrease from 6% and 5.9% in
2014 and 2015 respectively.
 Also shown in graph that as economy grows due to more
business activities, people get more employment
opportunities, hence, unemployment rate deceases.
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8. STEP-7: EVALUATE HYPOTHESIS AND
NULL-HYPOTHESIS.
 Data evaluation proves positive Hypothesis to be accepted.
As it supports the idea that yes, “Increase in Business
activity in Karachi decreases unemployment in Karachi.”
 Data evaluation proves Null-Hypothesis to be rejected. As
research does not supports the idea that says, “Increase in
Business activity in Karachi does not decrease
unemployment in Karachi.”
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9. STEP-8: PUBLISH THE RESULTS.
This hypothetical research was only done on the
basis of assignment requirement therefore is only
submitted to Sir Mehmood Hussain- Sociology course
instructor and is not published anywhere.
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