This paper, published by the Center for International Economics, reviews the literature on the determinants of terrorism to identify the true factors that drive terrorist activities. The authors, Tim Krieger and Daniel Meierrieks, examine various theoretical underpinnings and empirical evidence to assess the impact of economic, political, demographic, and institutional factors on terrorism. They find that terrorism is closely linked to political instability, sharp social divides, country size, and other demographic and institutional factors. However, evidence linking economic performance, structural economic conditions, democratization, education, or religious affiliation to terrorism is marginal. The paper concludes that sound counter-terrorism policies should focus on these prominent root causes of terrorism, such as increased international cooperation, rather than popular policy advice that focuses on poverty alleviation, economic development, or education. The authors also discuss the complex interplay between terrorism and various forms of violence and political conflict, emphasizing the need for tailored policies that address specific country circumstances.This paper, published by the Center for International Economics, reviews the literature on the determinants of terrorism to identify the true factors that drive terrorist activities. The authors, Tim Krieger and Daniel Meierrieks, examine various theoretical underpinnings and empirical evidence to assess the impact of economic, political, demographic, and institutional factors on terrorism. They find that terrorism is closely linked to political instability, sharp social divides, country size, and other demographic and institutional factors. However, evidence linking economic performance, structural economic conditions, democratization, education, or religious affiliation to terrorism is marginal. The paper concludes that sound counter-terrorism policies should focus on these prominent root causes of terrorism, such as increased international cooperation, rather than popular policy advice that focuses on poverty alleviation, economic development, or education. The authors also discuss the complex interplay between terrorism and various forms of violence and political conflict, emphasizing the need for tailored policies that address specific country circumstances.