Hello Flight Goodbye Capital

This research is an attempt at explaining and analyzing capital flight fromSoutheast Asia. The research surveys the literature on the meanings andmeasurements of capital flight. ''Was capital fleeing Southeast Asia?'' isanswered using the residual method. Next the issue ''Why was capital fleeingSoutheast Asia?'' is addressed. The examination is done using direct andindirect linkages between capital flight and external borrowing. ''ShouldSoutheast Asia worry about capital flight?'' is the third issue of the research.Counterfactual calculations using a planning method and multiplier methodexplore what the effects is capital flight was regulated and the funds wereused in productive domestic activities. Finally ''What is to be done?'' Policyguidelines are discussed that could lead to restrain reduceand reverse capitalflight.