Yonsei University · Economics, Econometrics and Finance
Professor Sangyup Choi's research lab specializes in international macroeconomics and financial economics, with a focus on the transmission mechanisms of uncertainty, monetary policy, and commodity price shocks across countries and industries. The lab investigates how macroeconomic and financial shocks—particularly those related to policy uncertainty, oil price fluctuations, and global risk sentiment—affect international capital flows, inflation, and productivity growth. Using rich, high-frequency, and disaggregated data from international institutions, the lab employs advanced econometric techniques to identify causal effects and disentangle push versus pull factors in global capital movements.
Figures are computed from collected data and may differ slightly.
Abstract While foreign direct investment (FDI) is known to be the most stable type of international capital flows, it may be particularly susceptible to heightened uncertainty because of its high fixed costs. We investigate the effect of domestic policy uncertainty on FDI inflows into 16 host countries using the OECD bilateral FDI panel data set and the economic policy uncertainty index from 1985 to 2013. The bilateral structure of the data enables us to disentangle pull factors of FDI from its
We combine industry-level data on output and prices with monetary policy shock estimates for 105 countries to analyze how the effects of monetary policy vary with industry characteristics. Next to being interesting in their own right, our findings are informative on the importance of various transmission mechanisms (as they are thought to vary systematically with the included characteristics). Results suggest that monetary contractions reduce output by more in industries featuring assets that ar
We study the impact of fluctuations in global oil prices on domestic inflation using an unbalanced panel of 72 advanced and developing economies over the period from 1970 to 2015. We find that a 10 percent increase in global oil inflation increases, on average, domestic inflation by about 0.4 percentage point on impact, with the effect vanishing after two years and being similar between advanced and developing economies. We also find that the effect is asymmetric, with positive oil price shocks
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