McKinnon and Pill (1995) provide an interesting account of the interaction between capital flows and financial sector weakness in recent Latin American experience.
Their final “stylised fact” provides an accurate description of the subsequent Asian problems: “The ‘over-borrowing’ episode culminates in a financial crisis, capital flight and recession - often forcing an uncontrolled deep devaluation of the currency, with a resurgence of inflation.” (p. 6) The characteristics of emerging countries impart to the flows far more volatility than is seen in, say, Australia.