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...