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southeast asia


Revision with unchanged content. This research is an attempt at explaining and analyzing capital flight from Southeast Asia. The research surveys the literature on the meanings and measurements of capital flight. ''Was capital fleeing Southeast Asia?'' is answered using the residual method. Next the issue ''Why was capital fleeing Southeast Asia?'' is addressed. The examination is done using direct and indirect linkages between capital flight and external borrowing. ''Should Southeast Asia worry about capital flight?'' is the third issue of the research. Counterfactual calculations using a planning method and multiplier method explore what the effects is capital flight was regulated and the funds were used in productive domestic activities. Finally, ''What is to be done?'' Policy guidelines are discussed that could lead to restrain, reduce,and reverse capital flight.

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