This study attempts to quantify empirically the factors behind terrorism in a sample of 36 countries. Panel data covering the period from 1984 to 2008 is used. The sample includes United States, Mexico, Colombia, Brazil, Chile, Argentina, United Kingdom, Bulgaria, Romania, Cameroon, Nigeria, Kenya, South Africa, Morocco, Tunisia, Libya, Sudan, Iran, Turkey, Iraq, Egypt, Syria, Israel, Saudi Arabia, Bahrain, China, India, Pakistan, Bangladesh, Myanmar, Sri Lanka, Thailand, Malaysia, Singapore, Philippines and Indonesia. In this study’s most complete model, regressors include corruption, consumer price index, openness, education, per capita growth and political instability. Fix effect model has been used to estimate the model. We find education to be a negative determinant of terrorism—i.e., lower education levels give rise to more transnational terrorism in sample countries. Where as corruption and consumer price index are positive determinants of terrorism. Growth rate of per capita and political instability are also having negative influence on terrorism. Supervisor:- Dr. Hasan M. Mohsin