The Unit of Analysis as a Critical Factor in the Research - Essay Example

Concept Paper Introduction The unit of analysis is a critical factor in research that helps in determining the focus of studies. The unit is the main factor that the research focuses on and it helps in making relevant conclusions and recommendations. There are four main types of units of analyses that include organizations, individual human beings, social interactions, and geographical regions (Malici, & Smith, 2013). This concept paper argues that geographical region and austerity regulations are the critical units of analyses in the research about, “Has the use of austerity policies helped to increase economic growth and development in the United Kingdom after the financial crisis of 2009?” The paper identifies the government and the Bank of England as the main actors who create and implement austerity policies. The research identifies three case studies that will help the research in focusing on the unit of analysis and drawing relevant answers to the research questions. Unit of Analysis Units of analyses are critical factors that help researchers in making accurate and reliable conclusions. This means that units of analysis are the main drivers of research without which it is impossible to undertake a study successfully. The units may be human beings, companies, laws, or geographical regions. Human beings act as units of analyses when they are being studied individually or in groups. These elements are studied when researchers are interested in drawing conclusions about social factors such as behavior, attitudes, and performance in school. Organizations are similar to individuals when studied as units of analyses because they may be studied individually or in groups. Companies are used as units of analyses when studies aim at identifying their performances and behavior (Malici, & Smith, 2013). In this study, human beings and organizations are not critical units of analyses; because the research may not be able to study each one of them in seclusion. This is because the research may not be able to identify specific individuals and organizations in the UK. Geographical regions may also be used as units of analyses in research. These may be individual countries or groups of countries that have similar characteristics. Geographical region is an essential unit of analysis in this research because it aims at focusing only on the United Kingdom. The United Kingdom is a geographical area that consists of three countries. The countries in the region include England, Scotland, and Wales (CLES, 2014)s. The research will focus on the three countries in collectivity because they implement the same rules and they have a system of measuring their results as one bloc. Therefore, the study will refer to the geographical region as United Kingdom for simplicity and cohesion. Social interactions are also critical units of analyses in research. These may be political legislations, friendships, court cases, or accidents. Social interactions may be anything related to how the society carries out its activities; hence, they are broad and non-exhaustive. This research aims at studying the effect of political legislation in the United Kingdom. Therefore, political legislation is a critical social interaction unit of analysis in the study. This unit is more preferable to the geographical region in the study because it is the one that leads the research to focusing on the United Kingdom. However, the two are critical and may not be separated in the study because they will help in determining the conclusions of the research. Therefore, the study will use both geographical region (United Kingdom) and social interaction (austerity policies) in collecting findings and constructing reliable conclusions and recommendations. Actors Related to the Unit of Analysis There are numerous institutions that are involved in the austerity policies of the United Kingdom. The United Kingdom parliament is the main organization that is involved in setting austerity policies in the region. The government does this by developing legislations that help in reducing state expenditure on the public (Kitson, Martin, & Tyler, 2011). The parliament constructs the policies with the aim of improving the economic conditions of the country, for example, creating jobs and increasing economic growth in the country. The British parliament that is located in Westminster is headed by the prime minister who is the head of the region. The British parliament believes that austerity policies are the solution to the economic downturn that the region experienced during the financial crisis of 2009 (Hall, 2012). The state, therefore, supports the creation and implementation of these regulations. The Bank of England is also a key player in the austerity policies of the United Kingdom. The institution helps the government in developing austerity regulations that are related to the financial sector of the economy. These regulations are known as monetary policies, and they aim at controlling the amount of funds that circulate in the economy. The bank uses interest rates and Open Market Operations as the main tools of controlling the money that circulates in the financial system (CLES, 2014). The Bank sells government bonds when it wants to reduce the funds in the economy while it buys them when increasing money in the economy. The Central Bank of England also controls the activities of all banks in the UK by being the lender of the last resort; this means that it lends out funds to commercial banks (CLES, 2014). This bank uses a tool known as the bank rate to reduce or increase the funds that are circulated to the economy by retail banks. The organization also sets the standard interest rates that banks charge with the aim of controlling inflation rate. This is the rate at which the prices of goods increase in the financial system. The institution increases the rate when discouraging borrowing to reduce inflation; while it decreases the rate when encouraging banks to lend out funds to stimulate the economy (Mishan, 2012). The International Labor Organization and the International Monetary Fund are also critical players in austerity policies in the UK. The International Labor Organization protects the rights of workers in all regions of the world; while the IMF advises governments by conducting research and forecasting (Kitson, Martin, & Tyler, 2011)s. However, these institutions do not take part in creating and implementing austerity regulations in the region. Rather, the organizations oversee how the government implements the policies while pointing out the possible effects and giving necessary recommendations. The two organizations have recently been against the austerity policies in the UK claiming that they are harming the economy instead of improving it. The ILO argues that the policies are harming employees in the UK while the IMF claims that they are decreasing economic growth (CLES, 2014). These two organizations will therefore be essential in the research because they will help in finding evidence of the effects of austerity policies in the UK. Case Studies The research will use a case study of a research conducted by Oxfam; the title of the case is, “The true cost of austerity and inequality: UK case study.” This article argues that the UK has increased the inequality between the rich and the poor in the economy in terms of income (Oxfam, 2013). This case begins by analyzing the situation that was in the region before the financial crisis of 2008. The article continues to analyze how the financial crisis affected the UK economy and how the government responded using austerity policies. The text then identifies the consequences that the austerity policies have had on the British economy. A major observation that Oxfam made is that the incomes of the poor people in Britain reduced by 2.8% between 2008 and 2011; while the earnings of the rich rose by 26% in the same period (Oxfam, 2013). This indicates that the policies have a devastating effect on the welfare of the poor who take up a higher population than the rich. Oxfam (2013) argues that if this situation persists, the UK may cease being developed because it will be controlled by the rich few who may become wealthier. The middle income and low income earners, on the other hand, may continue being poorer. Therefore, this paper will be a critical case study for the research because it will help in identifying how austerity regulations shape the gap between various social classes. Another case that will be of significance in the research is, “Austerity uncovered.” This report created by the Centre for Local Economic Strategies in 2014 provides a detailed analysis of austerity policies in the UK. The case begins by defining austerity policies and giving an account of how they are implemented in the region. The paper then identifies the effects of the stringent policies on all sectors of the economy, for example, the public sector and health segment of the financial system (CLES, 2014). The paper identifies the effects of austerity indicated by IMF and ILO on the level of employment and on the welfare of individuals in the state. The authors then give recommendations of strategies that might help to reduce the negative effects of austerity in Britain. The last crucial case study for the research will be, “Austerity, economic growth, and multipliers,” that was written by Hall David in 2012. This paper mainly focuses on the effects of austerity regulations on economic growth using the multiplier as the main indicator. The author uses the multiplier to show how austerity policies worsen the economic situation of the UK by reducing Gross Domestic Product (Hall, 2012). The reduction in GDP for that reason means that the policies reduce the economic growth of the state. The decrease in Gross Domestic Product of the region also means that there is low development because growth is directly proportional to development. The author makes reference to arguments made by the International Monetary Fund against the stringent policies. Conclusion A unit of analysis is the critical component of a research that is mainly focused on when finding answers to research questions. Social interactions in the form of austerity policies and the UK geographical region will be the main units of analyses in finding out whether stringent policies have helped Britain to achieve high economic growth. The main actors in these units include the UK parliament, the Bank of England, International Monetary Fund, and International Labor Organization. The IMF and ILO analyze the effects of policies implemented by the state and the central bank and suggest methods of improving growth and development in the UK. This paper identifies three case studies that will be essential in helping the research to find answers to questions. The studies identify the units of analysis and the actors associated with these units in the case. This means that the identified cases will be precise for answering the research questions. References Centre for local economic strategies (CLES), 2014. Austerity uncovered. TUC. Available at https://www.tuc.org.uk/sites/default/files/TUC%20Final%20Report%20Dec14_1.pdf Hall, D., 2012. Austerity, economic growth, and multipliers. Public service international research unit. Available at http://www.epsu.org/IMG/pdf/2012-10-Crisis-mults-2.pdf Kitson, M., Martin, R., & Tyler, P., 2011. The geographies of austerity. Cambridge Jnl regions, econ and society, 4 (3). 289-302. Malici, A., & Smith, E. S. (2013). Political science research in practice. London: Routledge. Mishan, E.J. (2012). Introduction to political economy. London: Routledge. Oxfam. (2013). The true cost of austerity and inequality: UK case study. Oxford: Oxfam GB. Read More