Revisiting the revolving door : capital flight from Southeast Asia / Edsel L. Beja, Jr.

Th e paper revisits hypothesized direct linkages between external borrowing and capital flight. It reviews the cases of Indonesia, Malaysia, the Philippines and Thailand to see if such linkages exist. The results indicate that, indeed, large sums of capital flowed in and out of these four countries in a revolving door process. Thus, the results lend support to the need for: better domestic management of external debt, sound macroeconomic management and solid macro-organizational foundations (with the government at the centre of policy making), active management of capital flows, and effective domestic and international involvement and coordination in capital flows.
The concept of capital flight -- Analysis of the revolving door model of capital flight -- Econometrics of the revolving door model of capital flight -- General setup of the revolving door model -- Why was capital fleeing Southeast Asia? -- Revolving door model of capital flight for Southeast Asia -- Final thoughts.

30 p. : tables

Includes bibliographical references (p. 29-30).